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Suppose a company has debt with a book ( face ) value of $ 1 0 million, trading at 9 0 % of face value.
Suppose a company has debt with a book face value of $ million, trading at of face value. the firm also has book equity of $ million, and million shares of common stock trading at $ per share.What weights should this firm use in calculating its WACC? and why? Provide calculations in order to prove your answer.
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