Famas llamas has a weighted average cost of capital of 110


Fama’s Llamas has a weighted average cost of capital of 11.0 percent. The company’s cost of equity is 13 percent, and its pretax cost of debt is 9.0 percent. The tax rate is 40 percent. What is the company's debt-equity ratio?

(Do not round intermediate calculations and round your final answer to 4 decimal places (e.g., 32.1616).)

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Financial Management: Famas llamas has a weighted average cost of capital of 110
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