Famas llamas has a weighted average cost of capital of 98


Fama's Llamas has a weighted average cost of capital of 9.8 percent. The company's cost of equity is 12 percent, and its pretax cost of debt is 7.8 percent. The tax rate is 40 percent. What is the company's target debt-equity ratio? Please show steps.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Famas llamas has a weighted average cost of capital of 98
Reference No:- TGS01227111

Expected delivery within 24 Hours