Question
Book Co. has1.4 million shares of common equity with a par (book) value of $1.10, retained earnings of $28.4 million, and its shares have a
Book Co. has1.4 million shares of common equity with a par (book) value of $1.10, retained earnings of $28.4 million, and its shares have a market value of $50.02 per share. It also has debt with a par value of $21.9 million that is trading at 103% 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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Health Care Finance And The Mechanics Of Insurance And Reimbursement
Authors: Michael K. Harrington
2nd Edition
1284169030, 978-1284169034
