question archive 1) Suppose Corporation A has a book (face) debt value of $9M, trading at 84% of face value
1) Suppose Corporation A has a book (face) debt value of $9M, trading at 84% of face value
Subject:FinancePrice: Bought3
1) Suppose Corporation A has a book (face) debt value of $9M, trading
at 84% of face value. It also has book equity of $21 million, and 2.21 million shares of common stock trading at $21 per share. What is the weight for for common equity that Corporation A should use in calculating its WACC?
2) Suppose Corporation A has a book (face) debt value of $9M, trading
at 89% of face value. It also has book equity of $21 million, and 2.91 million shares of common stock trading at $20 per share. What is the weight for debt that Corporation A should use in calculating its WACC?
