Convert a debt/equity ratio of 0.5 into the debt capital structure weight and equity capital structure weight.

Multiple Choice

• Debt capital structure weight = 0.5 Equity capital structure weight = 1.0

• Debt capital structure weight = 0.25 Equity capital structure weight = 0.75

• Debt capital structure weight = 0.33 Equity capital structure weight = 0.67

• There is not enough information to calculate the answer.