Question 11

3 Points

Acme Manufacturing reports the following capital structure with amounts reported in $ millions: long-term debt of $590; present value of leases of $340; convertible debt of $130; and common equity of $520. Further research indicates that the market value of the long-term debt is 97% of its book value, the market value of the convertible debt is 110% of its book value and (77% of the convertible debt is debt-related with the remainder equity-related, and the market value of the common equity is 920% of its book value. What should be the percentage (relative weight) of debt that to be included in the WACC calculation? Please round your answer to one decimal place (e.g., 34.5).