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Products Corp. has 5 million outstanding shares of common stock which has a beta of 1.05. The current market price is $25 per share and
Products Corp. has 5 million outstanding shares of common stock which has a beta of 1.05. The current market price is $25 per share and the book value per share is $17. It has a bond issue outstanding with a face $50 million which currently trades at a discount of 90.
If you were asked to calculate the weighted cost of capital what capital structure weights would you use?
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