Question: Problem 13-7 Finding the Capital Structure Famas Llamas has a weighted average cost of capital of 10.2 percent. The companys cost of equity is 14
Problem 13-7 Finding the Capital Structure Famas Llamas has a weighted average cost of capital of 10.2 percent. The companys cost of equity is 14 percent, and its cost of debt is 8.2 percent. The tax rate is 35 percent. What is the companys debtequity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) Debt?equity ratio Hints
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