Given are the following data for Golf Corporation:
Market price/share = $12; Book value/share = $10; Number of shares outstanding = 100 million; Market price/bond = $800; Face value/bond = $1,000; Number of bonds outstanding = 1 million. Calculate the proportions of debt (D/V)and equity (E/V)for Golf Corporation that you should use for estimating its weighted average cost of capital (WACC).
A)40 percent debt and 60 percent equity
B)50 percent debt and 50 percent equity
C)45.5 percent debt and 54.5 percent equity
D)66.7 percent debt and 33.3 percent equity

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The Answer of Given are the following data for Golf Corporation:
Market price/share = $12; Book value/share = $10; Number of shares outstanding = 100 million; Market price/bond = $800; Face value/bond = $1,000; Number of bonds outstanding = 1 million. Calculate the proportions of debt (D/V)and equity (E/V)for Golf Corporation that you should use for estimating its weighted average cost of capital (WACC).
A)40 percent debt and 60 percent equity
B)50 percent debt and 50 percent equity
C)45.5 percent debt and 54.5 percent equity
D)66.7 percent debt and 33.3 percent equity

Given Are the Following Data for Golf Corporation