The companys cost of equity is 12 pre tax cost of debt is 8


Target Capital structure

Fama's Lama has a weighted average cost of capita of 10%. The company's cost of equity is 12%, pre tax cost of debt is 8%. If the tax rate is 0% then what is the target debt to equity ratio?

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Financial Management: The companys cost of equity is 12 pre tax cost of debt is 8
Reference No:- TGS02826007

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