Famarsquos llamas has a weighted average cost of capital of, Financial Management

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Famarsquos llamas has a weighted average cost of capital of

Fama’s Llamas has a weighted average cost of capital of 9.5 percent. The company’s cost of equity is 11 percent, and its cost of debt is 7.5 percent. The tax rate is 40 percent. What is the company’s debt–equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

Debt−equity ratio

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Financial Management: Famarsquos llamas has a weighted average cost of capital of

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