Key facts and assumptions concerning FM Foods, Inc. at December 31, 2011, appear below.
-Estimate the appropriate weight of equity to be used when calculating FM's weighted average cost of capital.
A) 11.5%
B) 19.3%
C) 80.7%
D) 88.5%
E) 100.0%
F) None of the above.
Correct Answer:
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