1. Would “edutainment” parks like KidZania can find success in the United States? Explain your answer. What other additions or ideas you can think of that can enhance acceptance of the main park idea?
2. Dana’s Llamas has a weighted average cost of capital of 9.1 percent. The company’s cost of equity is 11 percent, and it’s pretax cost of debt is 7.1 percwnt. The tax is 38 percent. What is the company’s target debt- equity ratio?