The tax rate is 38 percent what is the companys target, Financial Management

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The tax rate is 38 percent what is the companys target

Fama's Llamas has a weighted average cost of capital of 11 percent. The company's cost of equity is 14 percent, and its pretax cost of debt is 8 percent. The tax rate is 38 percent. What is the company's target debt-equity ratio? (Do not round intermediate calculations. Round your answer to 4 decimal places. For example, 0.1234545 should be entered as 0.1234)

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Financial Management: The tax rate is 38 percent what is the companys target

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