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What are the current proportions of debt

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A firm has 65% probability of being worth $100 million and a 35% probability of being worth $130 million. There is one bond outstanding that promises to pay $100 million at an interest rate of 7%. The cost of capital for the firm's projects is 9%. What are the current proportions of debt and equity financing used by the firm?

Reference no: EM132774749

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