A company's market value of equity is $13,600,000and its publicly traded debt sells for85% of face value. The company's book value of equity is $15,000,000and its book value of debt is $4,000,000. If using capital structure weights to compute the company's WACC, what weighting should be used for debt financing?

Answer rating: 100% (QA)

Lets assume the face value of the debt is 5000000 Now we can proceed with t... View the full answer