QUESTION 1 "Suppose Corporation A has a book (face) debt value of $41 Million USD,...
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Finance
QUESTION 1
"Suppose Corporation A has a book (face) debt value of $41 Million USD, trading at 75% of its face value. It also has book equity of $15 Million USD, and 12 Million shares of common stock trading at $12 per share. What weights should Corporation A use for Debt capital when calculating its WACC? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"
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QUESTION 2
"Suppose Corporation A has a book (face) debt value of $41 Million USD, trading at 75% of its face value. It also has book equity of $15 Million USD, and 12 Million shares of common stock trading at $12 per share. What weights should Corporation A use for Equity capital when calculating its WACC? Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"
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