What Percentage of Value Should Be Allocated to Equity in WACC

question 50

Multiple Choice

What percentage 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) 50.00%
• B) 54.18%
• C) 56.55%
• D)60.47%

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