Famarsquos llamas has a wacc of 106 percent the


Fama’s Llamas has a WACC of 10.6 percent. The company’s cost of equity is 13.8 percent, and its pretax cost of debt is 8.6 percent. The tax rate is 34 percent. What is the company’s target debt–equity ratio?

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Financial Management: Famarsquos llamas has a wacc of 106 percent the
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