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I would like to ask about the debt/equity
In exam if its written ”debt/equity 40%”, so what does it means if we are calculating WAAC then how much is the debt and how much is equity?
Thanks
Debt/equity 40% = 40 debt to 100 equity; total capital = 140
For WACC weight Kd with 40/140 and Ke with 100/140.
