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A company is thinking about investing in a new project. The balance sheet reports that they currently have $42 million worth of long-term debt and
A company is thinking about investing in a new project. The balance sheet reports that they currently have $42 million worth of long-term debt and $24 million worth of common equity. They also have 1.2 million shares of stock outstanding and the stock currently trades for $35 per share. They have no preferred stock. What is the weight of equity in the company s capital structure? 50.00% 36.36% 38.89% 63.64% None of the above
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