Find the company target debt-equity ratio

Reference no: EM131972904

Question: Fama's Llamas has a weighted average cost of capital of 11.5 percent. The company's cost of equity is 16 percent, and its pretax cost of debt is 8.5 percent. The tax rate is 34 percent. What is the company's target debt-equity ratio? (Do not round your intermediate calculations.)

Reference no: EM131972904

Questions Cloud

Evaluate the new machinery system profitability : A farmer is considering replacing a labor-intensive machine system with a more capital-intensive one. The new machinery costs $45,000.

Multiple definitions of public relations : Provide an example about how public relations (PR) principles apply to the company Apple.

Consultant overhearing conversation : As a consultant overhearing this conversation, how do you suggest the managing director respond to Charley's challenge?

Ideal starbucks customer from a profitability standpoint : How does the Starbucks of 2002 differ from the Starbucks of 1992? Describe the ideal Starbucks customer from a profitability standpoint.

Find the company target debt-equity ratio : Fama's Llamas has a weighted average cost of capital of 11.5 percent. The company's cost of equity is 16 percent, and its pretax cost of debt is 8.5 percent.

Write down essay on topic - Bullying : Write essay on topic of 2000 words. Topic - Bullying. My sub topic is - Australia experience of laws and experience on cyber bullying

What was the company net operating working capital : Falcon Sky's balance sheet showed total current assets of $4.250,000, all of which were required in operations. Its current liabilities consisted.

What is the present value of the tree planting cost : What is the present value of the tree planting cost? What is the present value cost of the $1,000 forest management cost?

Calculate the net cost of the equipment in pv terms : Your company is purchasing a new piece of equipment for $35,000 and will keep it indefinitely. For accounting purposes, the equipment will be depreciated.

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages