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Please answer all questions Ignore the flotation cost of 2% and calculate the rest of the values. 30. (LO 20.5, 20.6, 20.7) AOK Ventures Inc.
Please answer all questions
Ignore the flotation cost of 2% and calculate the rest of the values. 30. (LO 20.5, 20.6, 20.7) AOK Ventures Inc. ("AOKVI") currently has the following on its balance sheet: AOKVI has a 34 percent tax rate. Present market conditions are as follows: - Debt - similar risk, 10-year bonds could be issued at par with a yield to maturity at 6.5 percent and flotation costs of 2 percent. - Common shares - currently trading at $3.14 per share a. Calculate the market value weights of each source of capital. project, assuming it had similar risk to the risk of the firm itself. Assume a cost of equity capital of 9.75\%Step by Step Solution
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