The companys cost of equity is 14 percent and its cost of, Financial Management

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The companys cost of equity is 14 percent and its cost of

Finding the Capital Structure Fama’s Llamas has a weighted average cost of capital of 10.2 percent. The company’s cost of equity is 14 percent, and its cost of debt is 8.2 percent. The tax rate is 35 percent. What is the company’s debt–equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) Debt equity ratio Hints

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