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Andyco, Inc. has the following balance shhet and an equity market to book ratio of 1.8. Assuming the market value of debt equals its book
Andyco, Inc. has the following balance shhet and an equity market to book ratio of 1.8. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? If the assets is $1030, Debt is $440 and Equity is $590.
a). What is the weight for the debt in %? (Enter as percent rounded to two decimal places)
b). The weight for common equity in %? (Enter as percent rounded to two decimal places)
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