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A company has 100,000 common shares outstanding, trading at $20 per share currently. The company has debt of $500,000. To calculate WACC, you need the
A company has 100,000 common shares outstanding, trading at $20 per share currently. The company has debt of $500,000. To calculate WACC, you need the weights of equity and debt in the companys capital structure. Find the weight of equity (in other words, the equity-to-assets ratio).
| a. | 80% | |
| b. | 75% | |
| c. | 20% | |
| d. | 25% |
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