Question
Polycorp has a debt equity ratio of 0.83.What is the correct debt ratio D/V that should be used in the WACC formula? WACC = ke
Polycorp has a debt equity ratio of 0.83.What is the correct debt ratio D/V that should be used in the WACC formula?
WACC = ke x E/V+ kd x (1-t) x D/V
Provide an answer as a decimal accurate totwo decimal places eg 60.156% should be entered as .60
Do not enter the % sign.
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College Mathematics For Business Economics, Life Sciences, And Social Sciences
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
14th Edition
0134674146, 978-0134674148
