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Kharnila Corp. is considering the purchase of a new factory and would like to finance the purchase with a combination of debt and equity. The
Kharnila Corp. is considering the purchase of a new factory and would like to finance the purchase with a combination of debt and equity. The factory will cost $99,214 total, of which $18,482 will be financed by new common stock. The remainder will be financed by debt. What is the proportion of debt financing for use in the WACC calculation? Submit your answer as a percentage and round to two decimal places (Ex. 0.00%) Please give step by step answer.
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