Question
The book values of a companys equity and debt are $20,000,000 and $6,000,000, respectively. The market value of the companys equity is $24,300,000. The companys
The book values of a companys equity and debt are $20,000,000 and $6,000,000, respectively. The market value of the companys equity is $24,300,000. The companys 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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Personal Finance
Authors: E Thomas Garman, Raymond E Forgue
10th Edition
143903902X, 9781439039021
