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Calculate the capital structure weight of debt given the following information: (Not all information might...

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Finance

Calculate the capital structure weight of debt given the following information: (Not all information might be used)

  • The company issues only common stock and coupon bonds.
  • The company has a debtequity ratio of 1.37.
  • The cost of equity is 13.3 percent and the pretax cost of debt is 7.5 percent.
  • The tax rate is 40 percent.

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