Iron Chicken Mock Exam BPP book not sure exam date

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November 29, 2019 at 8:59 am #554131
rouquinblanc
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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
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If debt/equity were 50% that would mean 1 debt to 2 equity. 100% means 1 debt to 1 equity.
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