Famas llamas has a weighted average cost of capital of 125


Fama's Llamas has a weighted average cost of capital of 12.5 percent. The company's cost of equity is 17 percent, and its cost of debt is 8.5 percent. The tax rate is 34 percent.

Required:

What is Fama's debt-equity ratio?

 

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Finance Basics: Famas llamas has a weighted average cost of capital of 125
Reference No:- TGS0611379

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