Famas llamas has a wacc of 1080 percent the companys cost
Fama's Llamas has a WACC of 10.80 percent. The company's cost of equity is 14.2 percent, and its cost of debt is 8.4 percent. The tax rate is 40 percent.
Required:
What is Fama's target debt-equity ratio?
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Why is this important, and would you find any of this information on the statement of cash flows? What level of liquidity and solvency would you be looking for? Why?
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