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A CFO is trying to determine her firm's capital structure. The firm has the following simplified balance sheet: Balance Sheet: Long-term debt:$5,452,849.00 Shareholder Equity:$5,736,700.00 An
A CFO is trying to determine her firm's capital structure. The firm has the following simplified balance sheet:
Balance Sheet:
Long-term debt:$5,452,849.00
Shareholder Equity:$5,736,700.00
An analyst has estimated that the debt trades at 97.00% of book value, while the market to book ratio for the common stock is 1.35. What is the weight in debt for the firm?
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