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Electronics Galore has 950,000 shares of common stock outstanding at a book value of $10 per share. The market price of the common stock is
Electronics Galore has 950,000 shares of common stock outstanding at a book value of $10 per share. The market price of the common stock is $38 per share. The company also has 40,000 bonds outstanding that are quoted at 106 percent of $1,000 face value. What weight should be given to the debt when the firm calculates its weighted average cost of capital
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