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3. Book Co. has 1.7 million shares of common equity with a par (book) value of $1.10, retained earnings of $31.3 million, and its shares
3. Book Co. has 1.7 million shares of common equity with a par (book) value of $1.10, retained earnings of $31.3 million, and its shares have a market value of $50.96 per share. It also has a debt with a par value of $18.8 million that is trading at 104% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC?
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