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A financial analyst is in the process of estimating the cost of capital of Gewicht GmbH. The following information is obtained from the company
A financial analyst is in the process of estimating the cost of capital of Gewicht GmbH. The following information is obtained from the company web pages. Market value of debt: $50 million Market value of equity: $600 million Table 1. Primary competitors and capital structures (in millions) Market value of Market value of Competitor debt equity A $25 $50 B $101 $190 C $40 $60 QUESTIONS: What are Gewicht GmbH target capital structure (DV and E/V) if the analyst uses current capital structure? Note: round number to four decimal places to report the results Options: 0.4545 0.5454 0.4213 0.4921 D/V EN
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