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1. Balance sheet data Market value Bonds $10 million maturity value $ 9 million Preferred stock $ 5 million par value $ 4 million Common

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1. Balance sheet data Market value Bonds $10 million maturity value $ 9 million Preferred stock $ 5 million par value $ 4 million Common stock $15 million book value $ 10 million Bond price $900 per $1,000 maturity value Preferred stock price $80 per $100 par value Common stock price $10 per share (There are 1 million shares of common stock outstanding.) Calculate the weights to be used in the cost of capital calculation if the weights are based on: a, the company's book values. b. the company's market values. c. Which set of weights should the company use

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