Question
Assets Liabilities and Equity $1,010 Debt $440 Equity $650 Andyco, Inc., has the following balance sheet, and an equity market-to-book ratio of 1.4. Assuming the
| Assets | Liabilities and Equity | |
| $1,010 | Debt | $440 |
| Equity | $650 |
Andyco, Inc., has the following balance sheet, and an equity market-to-book ratio of 1.4. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation?
The weight of debt for the WACC calculation is
The weight of equity for the WACC calculation is
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Handbook Of Research Methods And Applications In Empirical Finance
Authors: Adrian R. Bell, Chris Brooks, Marcel Prokopczuk
1st Edition
1782540172, 978-1782540175
