Crowsnest Industrial has the following capital structure information: Assuming the company is operating at its target...
Crowsnest Industrial has the following capital structure information:
Assuming the company is operating at its target capital structure what are the appropriate weights to use for calculating WACC?
Homework Answers
Weight of equity=15*4000000/(15*4000000+20000*880)
=77.32%
Weight of debt=20000*880/(15*4000000+20000*880)
=22.68%
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