The companys cost of equity is 17 percent and its pretax


Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of 13 percent. The company's cost of equity is 17 percent, and its pretax cost of debt is 7.5 percent. The tax rate is 33 percent. What is the company's target debt-equity ratio? (Do not round your intermediate calculations.) rev: 09_20_2012 0.5216 0.5016 0.7273 0.5266 0.4765.

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Financial Management: The companys cost of equity is 17 percent and its pretax
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