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Your brother advised you that the Debt-to-Equity Ratio of another assignment company (total debt to total equity) is 3 and that of this equity there
Your brother advised you that the Debt-to-Equity Ratio of another assignment company (total debt to total equity) is 3 and that of this equity there is 50% ordinary shares. Of the Debt, 20% relates to 10-year bonds and the rest to 5-year bonds. Determine the weight of 5-year debt, 10-year debt, ordinary equity, and preference equity to be used in the calculation of the after tax WACC. (4 points)
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