1. Finding the Capital Structure. Famas Llamas has a WACC of 9.6 percent. The companys...

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Finance

1. Finding the Capital Structure. Famas Llamas has a WACC of 9.6 percent. The companys cost of equity is 12 percent, and its cost of debt is 7.6 percent. The tax rate is 35 percent. What is Famas debt-to-equity ratio? Round to the nearest 4 decimal places.

2.

Weighted Average Cost of Capital. Kose Inc. has a target debt-to-equity ratio of 0.65. Its WACC is 12.2 percent, and the tax rate is 35 percent.

If Koses cost of equity is 15 percent, what is its pre-tax cost of debt? Answer: %

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