- How do they come up with the weight of debt and weight of equity being 0.5 from the given information of Debt to Asset being 50% :
wd = 0.5, we = (1-0.5)
- Same type of issue with the D/E calculation. As per answers, the D/E ratio is 1.5 given by 0.50 / (1-.05); where 0.5 is the Debt to Asset ratio. I am getting lost on this notion…
What am I missing?