Assume JUP has debt with a book value of $21 million, trading at 120% of par value. The firm has book equity of $26 million, and 2 million shares trading at $19 per share. What weights should JUP use in calculating its WACC?
Assume JUP has debt with a book value of $21 million, trading at 120% of par value. The firm has book equity of $26 million, and 2 million shares trading at $19 per share. What weights should JUP use in calculating its WACC?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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29. Assume JUP has debt with a book value of $21 million, trading at 120% of par value. The firm has book equity of $26 million, and 2 million shares trading at $19 per share. What weights should JUP use in calculating its WACC?
![Assume JUP has debt with a book value of $21 million, trading at 120% of par value. The firm has book equity of $26 million, and 2 million shares trading at $19 per
share. What weights should JUP use in calculating its WACC?
Lo
HREFER
Eat
20
OA. 35.89% for debt, 64.11% for equity
O B.
27.91% for debt, 72.09% for equity
Pha
O C.
39.87% for debt, 60.13% for equity
O D.
31.9% for debt, 68.1% for equity
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Transcribed Image Text:Assume JUP has debt with a book value of $21 million, trading at 120% of par value. The firm has book equity of $26 million, and 2 million shares trading at $19 per
share. What weights should JUP use in calculating its WACC?
Lo
HREFER
Eat
20
OA. 35.89% for debt, 64.11% for equity
O B.
27.91% for debt, 72.09% for equity
Pha
O C.
39.87% for debt, 60.13% for equity
O D.
31.9% for debt, 68.1% for equity
r 5
za
518
og
P
4
every meal is ju
(-2.47%) S&P 500
our community. L
your account until
Change Order Nu
bunt you
off.
RUNNING OUT GET
t your comm
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