Food shoppe galore had the following information: total market value of a company’s stock: $650 million total market value of the company’s debt: $150 million what is the weighted average of the company’s debt? multiple choice 18.75% 40.75% 55.75% 81.25% 90.50%

18.75%

Explanation:

Market value of stock = 650,000,000

Market value of debt = 150,000,000

Total market value of capital = Market value of stock  + Market value of debt

Total market value of capital = 650,000,000 + 150,000,000 = 800,000,000

Calculate the proportion of debt;

= 150,000,000/ 800,000,000

= 0.1875

Convert the 0.1875 to a percentage; 0.1875 *100 = 18.75%

Therefore, the weight average of the company's debt is 18.75%

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.