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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Finance Basics: Famas llamas has a wacc of 1080 percent the companys cost
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