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Amit Corp's balance sheet shows a total of noncallable $ 6 5 million long - term debt with a coupon rate of 5 % and

Amit Corp's balance sheet shows a total of noncallable $65 million long-term debt with a coupon rate of 5% and a yield to maturity of 8%. This debt currently has a market value of $40 million. The balance sheet also shows that the company has 5 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $30 per share; stockholders' required return, rs, is 12.00%; and the firm's tax rate is 25%. Consider this company's capital structure, what is the weight of debt calculated in market values? (submit your answer in percentages)
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