Problemfamas llamas has a wacc of 1030 percent the companys, Ask an Expert

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Problem:

Fama's Llamas has a WACC of 10.30 percent. The company's cost of equity is 13.2 percent, and its cost of debt is 8.9 percent. The tax rate is 40 percent.

Required:

Question: What is Fama's target debt-equity ratio?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148677

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