标题: debt/equity ratio [打印本页] 作者: torontoanalyst 时间: 2011-7-11 19:58 标题: debt/equity ratio
do we only use the formula debt/equity ratio/1+debt/equity ratio to find the percentage of debt for use in the WACC calc? Me most confused??作者: troymo 时间: 2011-7-11 19:58
Hey jar jar binks, let me help you.
For WACC you need capital structure WEIGHTINGS, IE D/D+E is the weight.
D/E is the debt/equity ratio which may be a solvency test, and one of the most likely uses will be to unlever/relever beta.作者: wxs1986 时间: 2011-7-11 19:58
you could also use it to determine net borrowings in FFCE questions.
