Suppose that a company's equity is currently selling for $45 per share and that there are 1
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Question:
Suppose that a company's equity is currently selling for $45 per share and that there are 1million shares outstanding. If the firm also has 7 thousand bonds outstanding, which are selling at 97 percent of par ($1,000), what are the firm's current capital structure weights for equity and debt respectively?
A.50%, 50%
B.86.89%, 13.11%
C.12.50%, 87.50%
D.31.69%, 68.31%
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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