Fama S Llamas Has A Weighted Average Cost Of Capital Of 8 9 Percent The Company

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Fama’s Llamas has a weighted average cost of capital of 8.9 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 7.9 percent. The tax rate is 35 percent. The company’s target debt-equity ratio is

Question:Fama’s Llamas has a weighted average cost of capital of 8.9 percent. The company’s cost ofequity is 12 percent, and its pretax cost of debt is 7.9 percent. The tax rate is 35…