A firm has 12,500 shares of stock outstanding that sell for $42 each.The book value of equity is $400,000.The firm has also issued $250,000 face value of debt that is currently quoted at 101.2.What value should be used as the weight of equity when computing WACC?
A) 67.48%
B) 72.09%
C) 61.54%
D) 69.74%
Correct Answer:
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