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QUESTION
Polycorp has a debt equity ratio of 0.65.What is the correct debt ratio D/V that should be used in the WACC formula?
Polycorp has a debt equity ratio of 0.65.What is the correct debt ratio D/V that should be used in the WACC formula?
WACC = ke x E/V + kd x (1-t) x D/V
Provide an answer as a decimal accurate to two decimal places eg 60.156% should be entered as .60
