Fama's Llamas has a WACC of 10.2 percent. The company's cost of equity is 12 percent,...

Transcribed Image Text:

Fama's Llamas has a WACC of 10.2 percent. The company's cost of equity is 12 percent, and its pretax cost of debt is 7.1 percent. The tax rate is 24 percent. What is the company's target debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616. Debt-equity ratio rded 0.3690 x Fama's Llamas has a WACC of 10.2 percent. The company's cost of equity is 12 percent, and its pretax cost of debt is 7.1 percent. The tax rate is 24 percent. What is the company's target debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616. Debt-equity ratio rded 0.3690 x