Question

Fama’s Llamas has a weighted average cost of capital of 9.1 percent. The company’s cost of...

Fama’s Llamas has a weighted average cost of capital of 9.1 percent. The company’s cost of equity is 12.7 percent, and its cost of debt is 7.3 percent. The tax rate is 21 percent. What is the company’s debt-equity ratio?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Fama’s Llamas has a weighted average cost of capital of 9.1 percent. The company’s cost of...
Fama’s Llamas has a weighted average cost of capital of 9.1 percent. The company’s cost of equity is 14 percent, and its pretax cost of debt is 6.4 percent. The tax rate is 24 percent. What is the company’s target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Fama’s Llamas has a weighted average cost of capital of 9.9 percent. The company’s cost of...
Fama’s Llamas has a weighted average cost of capital of 9.9 percent. The company’s cost of equity is 13.5 percent, and its cost of debt is 8.1 percent. The tax rate is 24 percent. What is the company’s debt-equity ratio?
Fama’s Llamas has a weighted average cost of capital of 9.4 percent. The company’s cost of...
Fama’s Llamas has a weighted average cost of capital of 9.4 percent. The company’s cost of equity is 13 percent, and its cost of debt is 7.6 percent. The tax rate is 24 percent. What is the company’s debt-equity ratio?
Fama’s Llamas has a weighted average cost of capital of 9.3 percent. The company’s cost of...
Fama’s Llamas has a weighted average cost of capital of 9.3 percent. The company’s cost of equity is 12.9 percent, and its cost of debt is 7.5 percent. The tax rate is 23 percent. What is the company’s debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Fama’s Llamas has a WACC of 9.1%. The company’s cost of equity is 11% and its...
Fama’s Llamas has a WACC of 9.1%. The company’s cost of equity is 11% and its cost of debt is 6.4%. The tax rate is 21%. What is the company’s debt-equity ratio?
Fama's Llamas has a weighted average cost of capital of 9 percent. The company's cost of...
Fama's Llamas has a weighted average cost of capital of 9 percent. The company's cost of equity is 16 percent, and its pretax cost of debt is 10 percent. The tax rate is 36 percent. What is the company's target debt-equity ratio?
Fama's Llamas has a weighted average cost of capital of 7.9 percent. The company's cost of...
Fama's Llamas has a weighted average cost of capital of 7.9 percent. The company's cost of equity is 11 percent, and its cost of debt is 5.8 percent. The tax rate is 25 percent. What is Fama's debt-quity ratio?
Fama's Llamas has a weighted average cost of capital of 9 percent. The company's cost of...
Fama's Llamas has a weighted average cost of capital of 9 percent. The company's cost of equity is 15 percent, and its pretax cost of debt is 10 percent. The tax rate is 36 percent. What is the company's target debt-equity ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places. For example, 1.2345 should be entered as 1.23.)
Fama's Llamas has a weighted average cost of capital of 12.5 percent. The company's cost of...
Fama's Llamas has a weighted average cost of capital of 12.5 percent. The company's cost of equity is 17 percent, and its pretax cost of debt is 7 percent. The tax rate is 34 percent. What is the company's target debt-equity ratio? Stock in Country Road Industries has a beta of 0.91. The market risk premium is 7.5 percent, and T-bills are currently yielding 5 percent. The company's most recent dividend was $1.7 per share, and dividends are expected to...
EU Corp. would like to have a 10.4 percent weighted average cost of capital. The company’s...
EU Corp. would like to have a 10.4 percent weighted average cost of capital. The company’s cost of equity is 12 percent, and its pre-tax cost of debt is 8.8 percent. The tax rate is 20 percent. What is the company’s target debt–equity ratio?