Finding the target capital structure


Fama's Llamas has a weight average cost of a capital of 9.6 percent. The Company cost of equity is 12 percent, and its pretax cost of debt is 7.9 percent. The tax rate is 35 percent. what is the company's target debt-equity ratio?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Finding the target capital structure
Reference No:- TGS042542

Expected delivery within 24 Hours