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- 2013-10-9
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they chosen the tresholds arbitrally to check what is WACC for different levels.
you can obtain the D/E if you know what is the D/D+E, f.e. if D/D+E=0.2 then E/D+E=0.8=1-(D/D+E)
now you can get D/E by dividing one by another: D/E=0.2/0.8=0.25 |
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