Answer says to start by solving for D/V = (.10-.03)/(.06-.14) I am getting lost on the math to solve for D/V can you

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Finance one quick Question with Debt to Equity Ratios
Rd = 6% Re=14% WACC=10% Calculate D/E Ratio
WACC = Re(E/V)+Rd(D/V)
Answer says to start by solving for D/V = (.10-.03)/(.06-.14) I am getting lost on the math to solve for D/V can you show me the detail and then solve for D/E please which is 1.
I can get it by using the following: Re=WACC + D/E(Ru-Rd)

    • 9 years ago
    Answer says to start by solving for D/V = (.10-.03)/(.06-.14) I am getting lost on the math to solve for D/V can you
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