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Invisible Inc has 3 million shares of common stock outstanding, 500,000 shares of 3% preferred stock outstanding, and 300,000 bonds with a coupon of 5.5%
Invisible Inc has 3 million shares of common stock outstanding, 500,000 shares of 3% preferred stock outstanding, and 300,000 bonds with a coupon of 5.5% outstanding. The common stock is currently selling for $48 per share. Assume the preferred stock has a par value of $100 and is currently selling for $108 per share. The face value of the bonds is $1,000 each and they are selling for 108% of par. Use a market value approach to capital structure. Common
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