Question
The book values of Rainma's equity and debt are $2.5 million and $1.25 million, respectively. The market values are $6 million and $1 million, respectively.
The book values of Rainma's equity and debt are $2.5 million and $1.25 million, respectively. The market values are $6 million and $1 million, respectively. What is the weight of Rainma's equity?
A. 66.7%
B. 79.5%
C. 85.7%
D. 87.4%
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
