Question
A company has a book value of $8 billion of equity and a face value of $12 billion of debt. What are the weights in
A company has a book value of $8 billion of equity and a face value of $12 billion of debt. What are the weights in debt and equity that are used for calculating the WACC?
| A. | 0.6, 0.4
| |
| B. | 0.5, 0.5 | |
| C. | cannot be determined
| |
| D. | 0.4, 0.6 |
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Private Equity Mathematics
Authors: Oliver Gottschalg
1st Edition
1908783508, 9781908783509
