Hello
We are asked to calculate the WACC with Debt/Equity 100%. For me that means the company is 100% debt-financed. However the WACC is calculated as 1/2 Ke + 1/2 Kd.
Why?
Thank you
Iron Chicken Mock Exam BPP book not sure exam date
6y ago#1If debt/equity were 50% that would mean 1 debt to 2 equity. 100% means 1 debt to 1 equity.