1) Fama's Llamas has a weighted average cost of capital of 9.8 percent. The company's...
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Accounting
1) Fama's Llamas has a weighted average cost of capital of 9.8 percent. The company's cost of equity is 13 percent, and its cost of debt is 6.5 percent. The tax rate is 35 percent. What is Fama's debt-equity ratio? 2) The shareholders of Bryant Power Corp. need to elect three new directors to the board. There are 16,500,000 shares of common stock outstanding, and the current share price is S13.75. If the company uses g procedures, how nuch will co to gone seat on the board fdireton 3) Acetate, Inc., has equity with a market value of $29.5 million and debt with a market value of $8 million. Treasury bills that mature in one year yield 5 percent per year, and the expected return on the market portfolio is 11 percent. The beta of the company's equity is 1.15. The firm pays no taxes a) What is the company's debt-equity ratio? b) What is the firm's weighted average cost of capital? c) What is the cost of capital for an otherwise identical all-equity firm
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