The tax rate is 40 percent what is the companys target, Financial Management

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The tax rate is 40 percent what is the companys target

1. Fama’s Llamas has a WACC of 10.3 percent. The company’s cost of equity is 13.2 percent, and its pretax cost of debt is 8.9 percent. The tax rate is 40 percent. What is the company’s target debt–equity ratio?

2. For those that have not yet started retirement savings, describe what you think a good plan is (Describe the different retirement plans). For retirement, are 401k terms or IRA terms better? When is the best time to begin retirement savings?

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Financial Management: The tax rate is 40 percent what is the companys target

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