Question
Book Co. has 1.8million shares of common stock with a par (book) value of $1.05, retained earnings of $28.3 million, and its shares have a
Book Co. has 1.8million shares of common stock with a par (book) value of $1.05, retained earnings of $28.3 million, and its shares have a market value of $48.93 per share. It also has debt with a par value of $21.2 million that is trading at 102% of par.
a)What is the market value of the equity?
b)What is the market value of its debt?
c)What weights should it use in computing its WACC?
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Multinational Financial Management
Authors: Alan C Shapiro, Paul Hanouna
11th Edition
1119559901, 9781119559900
