I have a Finance question: Fama’s Llamas has a WACC of 10.9 percent. The company’s cost of equity is 14.4 percent, and its pretax cost of debt is 8.3 percent. The tax rate is 38 percent. What is the company’s target debt-equity ratio?
I have a Finance question: Fama’s Llamas has a WACC of 10.9 percent. The company’s cost of equity is 14.4 percent, and its pretax cost of debt is 8.3 percent. The tax rate is 38 percent. What is the company’s target debt-equity ratio?
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