What is Fama’s target debt-equity ratio
January 9th, 2018
Fama’s Llamas has a WACC of 9.4 percent. The company’s cost of equity is 11.4 percent, and its cost of debt is 7.8 percent. The tax rate is 30 percent.Required:What is Fama’s target debt-equity ratio? (Do not round intermediate calculations. Round your answer to 4 decimal places (e.g., 32.1616).)Debt–equity ratio