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Question 1 Suppose Corporation A has a book (face) debt value of $13 Million USD, trading at 85% of its face value. It also has

Question 1

Suppose Corporation A has a book (face) debt value of $13 Million USD, trading at 85% of its face value. It also has book equity of $15 Million USD, and 11 Million shares of common stock trading at $11 per share. What weights should Corporation A use for Debt capital when calculating its WACC? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"

QUESTION 2

"Suppose Corporation A has a book (face) debt value of $13 Million USD, trading at 85% of its face value. It also has book equity of $15 Million USD, and 11 Million shares of common stock trading at $11 per share. What weights should Corporation A use for Equity capital when calculating its WACC? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05

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