Problemfamas llamas has a wacc of 1100 percent the companys, Ask an Expert

Accounting

Problem:

Fama's Llamas has a WACC of 11.00 percent. The company's cost of equity is 14.6 percent, and its cost of debt is 8.2 percent. The tax rate is 30 percent.

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

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Category:- Accounting Basics
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