calculate weight • 12.26.08
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How do you calculate the weight of equity in a capital structure where the ratio of debt to capital is greater than 100%?
I'm trying to calculate WAAC and am having problems relevering my "active beta clean" to incorporate an optimal capital structure that is "apparently" in accordance with the iterative process, greater than 1. How do I adjust my calculations to account for this? What is the weight of equity?
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