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Suppose a company has debt with a book (face) value of $10 million, trading at 90% of face value. the firm also has book equity
Suppose a company has debt with a book (face) value of $10 million, trading at 90% of face value. the firm also has book equity of $10 million, and 1 million shares of common stock trading at $35 per share. What weights should this firm use in calculating its WACC? and why?
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