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Use the following information for the next two questions. Security Price #Outstanding Cost Common Stock 45.90 20,000 12.50% Preferred Stock 102.00 1,000 8.00% Bonds 985.00
Use the following information for the next two questions.
| Security | Price | #Outstanding | Cost |
| Common Stock | 45.90 | 20,000 | 12.50% |
| Preferred Stock | 102.00 | 1,000 | 8.00% |
| Bonds | 985.00 | 3,000 | 6.50% (pre-tax) |
| Tax Rate | 21% |
Calculate the weight of common equity in the firm's capital structure.
| 0.317 | ||
| 0.167 | ||
| 0.231 | ||
| 0.042 |
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The Oxford Handbook Of Computational Economics And Finance
Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
