Famarsquos llamas has a wacc of 94 percent the


Fama’s Llamas has a WACC of 9.4 percent. The company’s cost of equity is 11.4 percent, and its pretax cost of debt is 7.8 percent. The tax rate is 30 percent. What is the company’s target debt–equity ratio?

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Financial Management: Famarsquos llamas has a wacc of 94 percent the
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