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Jones Manufacturing has the following (all in millions): Total Debt.............................................$3,562 Common Equity - Book Value............$2,560 Common Equity - Market Value........$12,850 What weight should an analyst
Jones Manufacturing has the following (all in millions):
Total Debt.............................................$3,562
Common Equity - Book Value............$2,560
Common Equity - Market Value........$12,850
What weight should an analyst assign to Jones Manufacturing's debt when calculating its weighted average cost of capital?
A. 21.7%
B. 50%
C. 58.2%
D. 78.3%
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