A firm has 1 million shares outstanding with a book value per share of $10 per share.
Fantastic news! We've Found the answer you've been seeking!
Question:
A firm has 1 million shares outstanding with a book value per share of $10 per share. The stock sells for a price of $20 per share. The firm's bonds have a par value of $8 million and are currently selling at a price of 120 percent of par. What is the appropriate proportion of equity to use in the WACC calculation?
Posted Date: