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A firm is financed with only equity and debt, and has the following information: Market value of debt: $102,000; market value of equity: $120,000. Book
A firm is financed with only equity and debt, and has the following information:
Market value of debt: $102,000; market value of equity: $120,000.
Book value of debt; $80,000; book value of equity: $100,000. What is its capital structure weight?
- Wd = 44.44% , We = 55.56%
- Wd = 55.56% , We = 44.44%
-Wd = 46% , We = 54.00%
- Wd = 54% , We = 46%
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