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A firm has the followign information: Equity: 40 million shares, $10 per share. Debt: $200 million book value in outstandig debt. Current bond price =$2,000

A firm has the followign information: Equity: 40 million shares,

$10

per share. Debt:

$200

million book value in outstandig debt. Current bond price

=$2,000

. What is the capital structure weight for debt?\

35%

\ 50%\

40%

\ None of the above

image text in transcribed
A firm has the followign information: Equity: 40 million shares, $10 per share. Debt: $200 million book value in outstandig debt. Current bond price =$2,000. What is the capital structure weight for debt? 35% 50% 40% None of the above

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