Question
17. The publicly traded debt of a company was recently quoted at 85% of face value. The market value of the companys equity is $13,600,000.
17. The publicly traded debt of a company was recently quoted at 85% of face value. The market value of the companys equity is $13,600,000. The book values of the companys debt and equity are $4,000,000 and $11,500,000, respectively. Assume you were calculating this company's WACC. For the capital structure weights, what debt financing weighting woud you use for this company?
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
