Famarsquos llamas has a wacc of 104 percent the, Financial Management

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Famarsquos llamas has a wacc of 104 percent the

Fama’s Llamas has a WACC of 10.4 percent. The company’s cost of equity is 13.4 percent, and its cost of debt is 8.8 percent. The tax rate is 38 percent. Required: What is Fama’s target debt-equity ratio?

(Do not round intermediate calculations. Round your answer to 4 decimal places (e.g., 32.1616).)

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Financial Management: Famarsquos llamas has a wacc of 104 percent the

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