Corporate Finance

rishabhhurkat
Good Student
Posts: 24
Joined: Wed Dec 09, 2015 9:29 am

Corporate Finance

Postby rishabhhurkat » Fri Mar 18, 2016 12:29 pm

According to me Correct answer is 'B'

As Debt = 62.5%
Equity = 37.5%
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edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: Corporate Finance

Postby edupristine » Sat Mar 19, 2016 8:27 am

Hi Rishabh

There is a problem in Question the debt range will be 0-50, and the equity range will be 0-150.

As you took $49, & $149 as debt and equity, but here the range of debt is 0-50 so it should be taken as 50 and range of equity is 0-150 so it should be taken as 150. so the answer 1 is correct.


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