Target weights calculation in wacc question

[IVC]

Guys, I know it might be a stupid Q but I can’t get the logic how to calculate debt and eq weights from the target debt to eq ratio… If you are given target debt to eq ratio of .25, how do you calculate percentages? Please help! Thank you!

 

[cpk123]

D/E = 0.25 or D=0.25E
D+E = 1
So 1.25 E = 1
So E = 0.8, D=0.2
And check: 0.2/0.8 = 0.25

 

[mohammad.belaal]

Debt to Equity = D/E = 0.25 which can also be written as 0.25/1 which means that D= 0.25 and E = 1
So: D+E = 1+0.25 = 1.25
As debt weight = D/(D+E) = 0.25/1.25 = 0.2
Equity weight = E/(D+E) = 1/1.25 = 0.8
So Debt weight = 20% whereas Equity weight = 80%
and like CPK mentioned D/E = 0.2/0.8 = 0.25