scarecrow

This is why I was originally confused to why the change in formula...makes sense though if you can't remember the real one

I just wouldn't want to get confused when they throw the capital structure in various ways... D/E, or D/A et cetera.... be careful with these ratios more importantly in calculating WACC

A very common mistake people do is they use the D/E ratio in the weighting for Debt in calculating WACC rather than changing it to D/A (i.e., D/D+E)

I had a corporate finance class in my masters program and this kind of stuff is my favorite...corporate finance section is the bomb