Question 18

What percentage of value should be allocated to equity in WACC computations for a

firm with $50 million in book value of debt selling at 85% of par. $50 million in book

value of equity, and $65 million in market value of equity?

60,5%

56.5%

54.1%

50.0%

43.3%

Question 18

What percentage of value should be allocated to equity in WACC computations for a

firm with $50 million in book value of debt selling at 85% of par. $50 million in book

value of equity, and $65 million in market value of equity?

60.5%

56.5%

54.1%

50.0%

43.3%