Jefferson Enterprises has 700,000 shares of common stock outstanding at a market price of $18 a share. The company also has 20,000 bonds outstanding that are quoted at 104 % of face value. What weight should be given to the debt when Jefferson Enterprises computes their weighted average cost of capital?

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The Answer of Jefferson Enterprises has 700,000 shares of common stock outstanding at a market price of $18 a share. The company also has 20,000 bonds outstanding that are quoted at 104 % of face value. What weight should be given to the debt when Jefferson Enterprises computes their weighted average cost of capital?

Jefferson Enterprises Has 700,000 Shares of Common Stock Outstanding at a Market