Suppose a firm has 10.4 million shares of common stock outstanding with a par value of $1 per share. The current market price per share is $12. The firm has outstanding debt with a par value of
$56 million selling at 102% of par. What capital structure weight would you use for debt when
Calculating the firm's WACC?
A) 0.157
B) 0.314
C) 0.686
D) 0.739
E) 0.843
Correct Answer:
Verified
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