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Market value of the equity-book co

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Book Co. has 1.8million shares of common stock with a par (book) value of $1.05, retained earnings of $28.3 million, and its shares have a market value of $48.93 per share. It also has debt with a par value of $21.2 million that is trading at 102% of par.

a) What is the market value of the equity?

b) What is the market value of its debt?

c) What weights should it use in computing its WACC?

Reference no: EM132707590

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