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Business, 03.05.2021 15:10 lea5261

A company has 800 bonds outstanding with a par value of $1,000 and priced at 95% of par. It also has 40,000 shares of common stock outstanding with a book value per share of $50 and market price per share of $60. Calculate the capital-structure weights for the firm (as if you were calculating the firm’s Weighted Average Cost of Capital).

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A company has 800 bonds outstanding with a par value of $1,000 and priced at 95% of par. It also has...
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