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Book Co. has 1.1 million shares of common equity with a par (book) value of $1.45, retained earnings of $30.4 million, and its shares have
Book Co. has 1.1 million shares of common equity with a par (book) value of $1.45, retained earnings of $30.4 million, and its shares have a market value of $51.71 per share. It also has debt with a par value of $18.3 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?
Book Co. has 1.1 million shares of common equity with a par (book) value of $1.45, retained earnings of $30.4 million, and its shares have a market value of $51.71 per share. It also has debt with a par value of $18.3 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?
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
9th Edition
9781119754053
