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Dicks Construction Company has 70,000 bonds outstanding that are selling at par value of $1,000 each. The bonds yield 7 percent. The company also has
Dicks Construction Company has 70,000 bonds outstanding that are selling at par value of $1,000 each. The bonds yield 7 percent. The company also has 4 million shares of common stock outstanding selling currently at $20 per share. Dicks stock has an expected return of 10%. Dicks tax rate is 21 percent. What is Dicks percent weight of financing with DEBT?
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