Finding the Target Capital Structure. Famas Llamas has a WACC of 8.65 percent. The companys...
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Finding the Target Capital Structure. Famas Llamas has a WACC of 8.65 percent. The companys cost of equity is 10.4 percent, and its pretax cost of debt is 5.3 percent. The tax rate is 35 percent. What is the companys target debtequity ratio?
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