Question: The common stock of Moe s Restaurant is currently selling for
The common stock of Moe’s Restaurant is currently selling for $80 per share has a book value of $60 per share, and there are 1 million shares of common stock outstanding. In addition, the firm also has 100,000 bonds outstanding with a par value of $1,000 that are selling at 110 percent of par. What are the capital structure weights that Moe’s should use to analyze its capital structure?
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