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A firm has the following book-value balance sheet; Debt =$ 15 ,000, Common Stock ($1 par)= 383 and Retained Earnings = $ 11 ,000. The
A firm has the following book-value balance sheet; Debt =$ 15 ,000, Common Stock ($1 par)= 383 and Retained Earnings = $ 11 ,000. The book value of assets is the total of Debt, Common Stock and Retained Earnings. The firm's bonds are currently selling for $ 938 and the firm's stock is currently selling for $ 22 . What is the firm's market value leverage ratio? Show your answer to the nearest .1%, Whole number answer
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