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Please show all work, thanks. 1. Based on our discussion in class, calculate the relevant financing proportions (Wd, Wp and we) that should be used

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1. Based on our discussion in class, calculate the relevant financing proportions (Wd, Wp and we) that should be used in the cost of capital calculation for each of the following sets of data on different firms. Balance sheet data $10 million maturity value Market value $ 11 million $ 6 million $ 22 million a. Bonds Preferred stock Common stock $ 5 million par value $15 million book value price$1,100 per $1,000 maturity value $ 22 per share Bond Preferred stock price Common stock price = (There are 1 million shares of common stock outstanding.) 120 per $100 par value b. There are two types of securities outstanding for the firm - bonds with a maturity value of $17 million and 350,000 shares of common stock. The current market price for the bonds is $1050 per $1000 maturity value, and the price of the stock is $75 per share. C. Balance sheet data Bonds (8% due 2028) Common stock (4,000,000 shares at $7 par value) Additional paid-in capital Retained earnings $120.0 million 28.0 million 82.0 million 80.0 million 190.0 million Total equity Market price for bonds Market price for stock $900 =$60

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