What is the target capital structure weight for debt

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1. A company desires to have $5,000,000 in debt and $20,000,000 in common equity outstanding. The firm does not have preferred stock outstanding. What is the target capital structure weight for debt?

2. A firm has a WACC of 9.5%. The firm can fund the following investment. Project X with an expected return of 10% and Project Y with an expected return of 9.5%. Which projects will the firm choose?

A. Only Project Y

B. Neither Project.

C. Only Project X

D. Both Project X and Project Y

Reference no: EM132047219

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