Book Co. has 1.9 million shares of common equity with a par (book) value of $1.05, retained earnings of $29.8 million, and its shares have a market value of $49.06 per share. It also has debt with a par value of $18.5 million that is trading at 102% 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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Part 1

a. What is the market value of its equity?

The market value of the equity is $ enter your response here million. (Round to two decimal places.)

Part 2

b. What is the market value of its debt?

The market value of the debt is $ enter your response here million. (Round to two decimal places.)

Part 3

c. What weights should it use in computing its WACC?

The debt weight for the WACC calculation is enter your response here%.

(Round to two decimal places.)

Part 4

The equity weight for the WACC calculation is enter your response here%.