Famas llamas has a weighted average cost of capital of 91


Fama's Llamas has a weighted average cost of capital of 9.1 percent. The company's cost ofequity is 11 percent, and its pretax cost of debt is 7.1 percent. The tax rate is 38 percent. What is the company's target debt-equity ratio?

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Finance Basics: Famas llamas has a weighted average cost of capital of 91
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