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Shares of common stock outstanding

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Alaka Enterprises has 725,000 shares of common stock outstanding at a market price of $16.35 a share. The company also has 18,000 bonds outstanding that are quoted at 103 percent of face value. What weight should be given to the debt when Alaka Enterprises computes their weighted average cost of capital?

Reference no: EM131758031

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Shares of common stock outstanding : Alaka Enterprises has 725,000 shares of common stock outstanding at a market price of $16.35 a share. The company also has 18,000 bonds outstanding
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