Food Shoppe Galore had the following information: Total market value of a company's stock $650 million Total market value of the company's debt $150 million What is the weighted average of the company's debt? A. 18.75% B. 40.75% C. 55.75% D. 81.25% E. 90.50%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
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Food Shoppe Galore had the following information:
Total market value of a company's stock $650 million
Total market value of the company's debt $150 million
What is the weighted average of the company's debt?
A. 18.75%
B. 40.75%
C. 55.75%
D. 81.25%
E. 90.50%
Transcribed Image Text:Food Shoppe Galore had the following information: Total market value of a company's stock $650 million Total market value of the company's debt $150 million What is the weighted average of the company's debt? A. 18.75% B. 40.75% C. 55.75% D. 81.25% E. 90.50%
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