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HW3.dvi Andyco, Inc., has the following balance sheet and an equity market-to-book ratio, defined as market value of equity divided by book value of equity,

HW3.dvi

Andyco, Inc., has the following balance sheet and an equity market-to-book ratio, defined as market value of equity divided by book value of equity, of 1.5. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation?

HW3.dvi

Assets Liabilities & Equity

$1, 000 Debt $400 Equity $600

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