Answer:
29.80%
70.20%
Explanation:
The computation of weights should it use for its WACC is shown below:-
FMV of Andyco's Equity = Equity × Equity market-to-book ratio
= $690 × 1.4
= $966
Weight for Debt = Debt ÷ (FMV Equity + Debt)
= $410 ÷ ($966 + $410)
= $410 ÷ $1,376
= 29.80%
Weight for Equity = FMV Equity ÷ (Debt + FMV Equity)
= $966 ÷ ($410 + $966)
= $966 ÷ $1,376
= 70.20%
Therefore we have applied the above formula
