Question
The book values of a company's equity and debt are $20,000,000 and $6,000,000, respectively. The market value of the company's equity is $24,300,000. The company's
The book values of a company's equity and debt are $20,000,000 and $6,000,000, respectively. The market value of the company's equity is $24,300,000. The company's debt is publicly traded and was recently quoted at 95% of face value. If you were calculating this company's WACC, what weighting woud you use for debt in the company's capital structure weights?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
133879879, 978-0133879872
