Famas llamas has a weighted average cost of capital of 11, Finance Basics

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Famas llamas has a weighted average cost of capital of 11

Question: Fama's Llamas has a weighted average cost of capital of 11 percent. The company's cost of equity is 15 percent, and its pretax cost of debt is 7.5 percent. The tax rate is 32 percent. What is the company's target debt-equity ratio? (Do not round your intermediate calculations.) The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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Finance Basics: Famas llamas has a weighted average cost of capital of 11

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