Given the following data for Vinyard Corporation:

Calculate the proportions of debt (D/V) and equity (E/V) for the firm that you would use for estimating the weighted average cost of capital (WACC):
A) 40% debt and 60% equity
B) 50% debt and 50% equity
C) 25% debt and 75% equity
D) none of the given values

Question

Given the following data for Vinyard Corporation:

Calculate the proportions of debt (D/V) and equity (E/V) for the firm that you would use for estimating the weighted average cost of capital (WACC):
A) 40% debt and 60% equity 
B) 50% debt and 50% equity 
C) 25% debt and 75% equity 
D) none of the given values

Quizplus · Accepted Answer

The Answer of Given the following data for Vinyard Corporation:

Calculate the proportions of debt (D/V) and equity (E/V) for the firm that you would use for estimating the weighted average cost of capital (WACC):
A) 40% debt and 60% equity 
B) 50% debt and 50% equity 
C) 25% debt and 75% equity 
D) none of the given values

Given the Following Data for Vinyard Corporation