Of these five U.S.industries, which one tends to have the highest level of debt as a...

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Of these five U.S.industries, which one tends to have the highest level of debt as a percentage of the market value of debt p

Which method(s) is(are) most applicable if a projects debt level is known over the life of the project? WACC Either FTE or W

business finance

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Answer 1

Answer #1

answer 1)i believe the answer for the above question is construction supplies because construction involves huge machines and other long lived assets which usually comes with a debt therefore among these 5 construction supplies should have the highest debt to equity ration

healthcare industy have good cash flows and support of government therefore its debt to equity are less

online reati andl gaming doesnt have as good as fixed assets requirements as construction therefore its debt to equity is less.

hotel industry incurs fixed cost only at initiation rest are maintainance charges also frequent cashflows help them having less debt to equity ratio

answer 2)

Use the WACC method when the level of debt is known over a project's life. The WACC method is appropriate when the target debt-to-value ratio applies over a project's life.

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Answer 2

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Of these five U.S.industries, which one tends to have the highest level of debt as a...

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