What is the weight of the debt as relates to the company

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Question 1: Watsons Automotive has a R400 000 bond issue outstanding that is selling at 102 per cent of face value. Watsons also has 4 500 preference shares and 21 000 ordinary shares. The preference shares have a market price of R44 a share compared to a price of R21 a share for the ordinary share. What is the weight of the debt as it relates to the company's weighted average cost of capital?

Reference no: EM132532280

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