Wal-Mart plans to open a new store near Campus. Wall Mart is going to finance via bond market and stock market. Total capital required is 10 million dollars. 7 million dollars are going to be borrowed from the bond market and the rest will be from the stock market.  What is the percentage of capital financed from the bond market (weight of debt)? 100% 70% 30% 40%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
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  1. Wal-Mart plans to open a new store near Campus. Wall Mart is going to finance via bond market and stock market. Total capital required is 10 million dollars. 7 million dollars are going to be borrowed from the bond market and the rest will be from the stock market.  What is the percentage of capital financed from the bond market (weight of debt)?
    1. 100%
    2. 70%
    3. 30%
    4. 40%
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