Question
Suppose that Lil John Industries' equity is currently selling for $30 per share and that 1.3 million shares are outstanding. Assume the firm also has
Suppose that Lil John Industries' equity is currently selling for $30 per share and that 1.3 million shares are outstanding. Assume the firm also has 23,000 bonds outstanding, and they are selling at 104 percent of par. What are the firm's current capital structure weights
What is the equity %?
What is the debt%?
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
