Book Co. has 1 million shares of common equity with a par (book) value of $1 per share, retained earnings of $30 million, and its shares have a market value of $50 per share. It also has debt with a par value of $20 million that is trading at 101% 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 if the market value capital structure is considered optimal? Answer: a. The market value of the equity is $ million. (Round to two decimal places.) b. The market value of the debt is $ million (Round to two decimal places.) c. The weight of debt for the WACC calculation is %. (Round to two decimal places.) The weight of equity for the WACC calculation is %. (Round to two decimal places.)