Question
A firm has 1 million shares outstanding with a book value per share of $10 per share. The stock sells for a price of $20
A firm has 1 million shares outstanding with a book value per share of $10 per share. The stock sells for a price of $20 per share. The firms bonds have a par value of $8 million and are currently selling at a price of 120 percent of par. What is the appropriate proportion of equity to use in the WACC calculation? 48.0 PERCENT
71.4 PERCENT
67.6 PERCENT
55.6 PERCENT
Thank you
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2 Principles Of Financial And Managerial Accounting
Authors: Pollard, Sherry T. Mills, Walter T. Harrison Jr.
0136009891, 978-0136009894
