Calculate the weights of debt

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Problem 1: Use the following partial balance sheet to calculate the weights of Debt (Wd), Preferred equity (Wp), and Common Equity (We):

Current liabilities $ 5,000,000
Long-term debt 4,000,000
Preferred stock 2,000,000
Common stock at $1 par 100,000
Paid in capital 900,000
Retained earnings 3,000,000
Total Liabilities and Equity $15,000,000

Reference no: EM132745934

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