The companys cost of equity is 155 percent and its pre-tax


Fama's Llamas has a weighted average cost of capital of 9.5 percent. The company's cost of equity is 15.5 percent, and its pre-tax cost of debt is 8.5 percent. The tax rate is 34 percent. What is the company's target debt-equity ratio?

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Accounting Basics: The companys cost of equity is 155 percent and its pre-tax
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