LucaCorp.'s 4.3% bonds are currently quoted as trading at "92." There are 10,000 bonds outstanding. The firm's marginal tax rate is 30%. The firm's stock is trading for $59 per share, with 1 million shares outstanding. The weight of the debt, WD, is ____%.
LucaCorp.'s 4.3% bonds are currently quoted as trading at "92." There are 10,000 bonds outstanding. The firm's marginal tax rate is 30%. The firm's stock is trading for $59 per share, with 1 million shares outstanding. The weight of the debt, WD, is ____%.
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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LucaCorp.'s 4.3% bonds are currently quoted as trading at "92." There are 10,000 bonds outstanding. The firm's marginal tax rate is 30%. The firm's stock is trading for $59 per share, with 1 million shares outstanding. The weight of the debt, WD, is ____%.
Do not round any intermediate work, but round your final answer to 2 decimal places (example: enter 12.34 for 12.34%). Do not enter the % sign.
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