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Here I Sit Sofas has 6,300 shares of common stock outstanding at a price of $86 per share. There are 830 bonds that mature in
Here I Sit Sofas has 6,300 shares of common stock outstanding at a price of $86 per share. There are 830 bonds that mature in 22 years with a coupon rate of 6 percent paid semiannually. The bonds have a par value of $1,000 each and sell at 104.5 percent of par. The company also has 5,200 shares of preferred stock outstanding at a price of $39 per share. What is the capital structure weight of the debt?
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