Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
Suppose your firm has a market value of equity is $500 million and a market value of debt is $475 million.
What are the capital structure weights (i.e., weight of equity and weight of debt)?
Group of answer choices
A) weight of equity is 51.28%, , weight of debt is 48.72%
B) weight of equity is 48.72%, , weight of debt is 51.28%
C) weight of equity is 47.62%, , weight of debt is 52.38%
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