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What weights should it use in computing its wacc

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Question - Book Co. has 1.1 million shares of common equity with a per (book) value of $1.10, retained earnings of $28.1 million, and its shares have a market value of $51.78 per share. it also has debt with a par value of $19.5 million that is trading at 101% of par.

a. What is the market value of its equity?

b. What is the market value of its debt?

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

Reference no: EM133153235

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