What is the company target debt-equity ratio

Assignment Help Financial Management

Reference no: EM131890774

Fama’s Llamas has a weighted average cost of capital of 10.7 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 8.7 percent. The tax rate is 40 percent. What is the company’s target debt−equity ratio? (Do not round intermediate calculations and round your final answer to 4 decimal places, e.g., 32.1616.)

Debt−equity ratio

Reference no: EM131890774

Questions Cloud

Lannister manufacturing has target debt-equity ratio : Lannister Manufacturing has a target debt-equity ratio of .55. what is the company’s WACC?

Design a current-to-voltage converter circuit : Design a current-to-voltage converter circuit to achieve the required bipolar output voltage and Test your design on PSpice and produce suitable graphical

Determine the key pieces of raw intelligence : Which foreign intelligence service will attempt to use the UNGA meeting in New York as an intelligence collection opportunity?

What is wacc if the average tax rate : What is WACC if the average tax rate is 34 percent.?

What is the company target debt-equity ratio : The tax rate is 40 percent. What is the company’s target debt-equity ratio?

What return to market investors require on currently : What return to market investors require on it currently? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

What is the pretax cost of debt : What is the pretax cost of debt? What is the aftertax cost of debt?

Required rate of return on stock : You believe you can sell the stock then for $12.50. If your required rate of return on this stock is 11%, how much are you willing to pay for the stock today?

What potential threat to the homeland do you believe : On the basis of your readings, what potential threat to the Homeland do you believe we are least prepared for?

User Account

All Pages