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Business, 17.12.2019 20:31 deja163

Fama's llamas calculated the weighted average cost of capital (wacc) using its target debt-equity ratio and found it to be 11.5 percent. the company's cost of equity is 17.5 percent, and its pretax cost of debt is 7 percent. the aftertax cost of debt is used in the wacc calculation with a tax rate of 31 percent. what is the company's target debt-equity ratio (d/e)?

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