Proportion of the firm financed with debt


Problem:

The WACC for a firm is 13.00 percent. You know that the firm's cost of debt capital is 10 percent and the cost of equity capital is 20%.

Required:

Question: What proportion of the firm is financed with debt?

Note: Show supporting computations in good form.

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Accounting Basics: Proportion of the firm financed with debt
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