a) Koppler Inc. has a weighted average cost of capital (WACC) of 11.5%. The return...

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Accounting

a) Koppler Inc. has a weighted average cost of capital (WACC) of 11.5%. The return on equity for the company is 16% and the return on credit is 8.5%. The company's income tax is 25%.

What is Koppler's debt-to-equity ratio?

b) What are the main reasons why the capital composition (value of equity and liabilities) is calculated based on market value rather than book value if this is an option in assessing yields?

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