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Iron Chicken Mock Exam BPP book not sure exam date

This topic has 1 reply, 2 voices, and was last updated 5 years ago by Ken Garrett.

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November 29, 2019 at 8:59 am #554131
rouquinblanc
Participant
- Topics: 19
- Replies: 18
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
November 29, 2019 at 5:09 pm #554167
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10544
If debt/equity were 50% that would mean 1 debt to 2 equity. 100% means 1 debt to 1 equity.
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