Fama's Llamas has a weighted average cost of capital of 10.5 percent. The company's cost of equity

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Fama's Llamas has a weighted average cost of capital of 10.5 percent. The company's cost of equity is 15 percent, and its pretax cost of debt is 7.5 percent. The tax rate is 31 percent. What is the company's target debt-equity ratio?

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Corporate Finance

ISBN: 978-0077861759

11th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Posted Date: Jul 26, 2019 10:51 AM

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Fama's Llamas has a weighted average cost of capital of 10.5 percent. The company's cost of equity

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Corporate Finance

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