A company has shares worth $30 dollars per share, with 1,000,000 shares outstanding. It also has 10,000

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A company has shares worth $30 dollars per share, with 1,000,000 shares outstanding. It also has 10,000 bonds outstanding, which have face values of $1,000 each and a coupon rate of 4%. These bonds are currently trading at par value.

Using the market value approach, what is the weight of debt for this company?

Related Book For answer-question

Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

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Posted Date: Sep 18, 2023 01:37 AM

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A company has shares worth $30 dollars per share, with 1,000,000 shares outstanding. It also has 10,000

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Financial Accounting an introduction to concepts, methods and uses

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