Suppose a company’s equity is currently selling for $37 per share and that there are 2 million shares outstanding. If the company also has 30 thousand bonds outstanding, which are selling at 103% of par, what are the company’s current capital structure weights? Blank one is __% (Equity to 2 decimal points); blank 2 is ___%
Suppose a company’s equity is currently selling for $37 per share and that there are 2 million shares outstanding. If the company also has 30 thousand bonds outstanding, which are selling at 103% of par, what are the company’s current capital structure weights? Blank one is __% (Equity to 2 decimal points); blank 2 is ___%
Chapter9: The Cost Of Capital
Section: Chapter Questions
Problem 7P
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Suppose a company’s equity is currently selling for $37 per share and that there are 2 million shares outstanding. If the company also has 30 thousand bonds outstanding, which are selling at 103% of par, what are the company’s current capital structure weights? Blank one is __% (Equity to 2 decimal points); blank 2 is ___% (Debt to 2 decimal points).
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