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COMRADE Hotels has 155,000 shares of common stock outstanding valued at $55 a share along with $10,000,000 of bonds outstanding (face value) selling for 101.5
COMRADE Hotels has 155,000 shares of common stock outstanding valued at $55 a share along with $10,000,000 of bonds outstanding (face value) selling for 101.5 percent of its face value. What weight should be given to the debt and to the equity when the company computes its weighted average cost of capital? Market Value Common Equity (E) Market Value of Common Debt (D) Market Value Assets (V) Weight Common Equity (We) Weight Debt (Wd)
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