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Barley Corp Has Debt with a Book Value of $19

Question 97

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Barley Corp has debt with a book value of $19 million,currently trading at 90% of book value.It also has book value of equity of $15 million,and 10 million shares of common stock trading at $2.45 per share.What weights should Barley Corp use for debt and equity in calculating its WACC?


A) 0.56,0.44
B) 0.44,0.56
C) 0.41,0.59
D) 0.5,0.5
E) 0.6,0.4

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