Debt/Equity vs. Debt/Capital??
Can someone please make sense of this for me. Sometimes (according to Schweser) it's ok to use Debt/Equity to calculate wacc but other times you have to use the DR / (1+DR).
The use of it seems completely illogical (even in the Mock today one problem used D/E and then another you were supposed to use the DR/(1+DR).
Does anyone understand when you're supposed to use them? |