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What weights should Corporation A use for Debt capital

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Reference no: EM132620849

Problem 1: Suppose Corporation A has a book (face) debt value of $15 Million USD, trading at 75% of its face value. It also has book equity of $15 Million USD, and 10 Million shares of common stock trading at $22 per share. What weights should Corporation A use for Debt capital when calculating its WACC? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05

Reference no: EM132620849

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