Similar to finding the percentages of a stock within a portfolio of stocks, we can find the percentages of a firm's financing portfolio. Firms typically focus on three sources of financing: common stock, preferred stock, and debt.
If a firm has only debt and equity financing with $45,000 in equity financing and $32,000 in debt financing; what percentage of the firm's financing is in equity?
a) 71. 11%
b) 45. 00%
c) 40. 63%
d) 58. 44%
e) 77. 00%