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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