What % Age of Value Should Be Allocated to Equity

question 82

Multiple Choice

What % age of value should be allocated to equity in WACC computations for a firm with $50 million in debt selling at 85% of par, $50 million in book value of equity, and $65 million in market value of equity?

• A)50.0%
• B)54.1%
• C)56.5%
• D)60.5%

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Definitions:

If Statement

A conditional programming statement that runs a specific block of code when a certain condition is met.

Else Clause

A part of conditional statements in programming that specifies what action to take when the condition in an if statement is not met.

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A programmed instruction that triggers a sequence of operations or commands in software, automating repetitive tasks.

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