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MARKET VALUE CAPITAL STRUCTURE. Refer to the above problem. A firm's stock is selling for $4.50 per share. The firm has 500,000 shares outstanding. ?The

MARKET VALUE CAPITAL STRUCTURE. Refer to the above problem. A firm's stock is selling for $4.50 per share. The firm has 500,000 shares outstanding. ?The total face value of the firm's bonds is $800,000 however the bonds are selling at 94 percent of their face value. Calculate the firm's DEBT RATIO, based on market values.

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