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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Book Co. has 1 million shares of common equity with a par (book) value of $1, retained earnings of $30 million, and its shares have a market value of $50 per share. It also has debt with a par value of $20 million that is trading at 101% of par.
a. What is the market value of its equity?
b. What is the market value of its debt?
c. What weights should it use in computing its WACC?
 A----------- Ma-----------rke-----------t V-----------alu-----------e o-----------f E-----------qui-----------ty -----------= 1----------- mi-----------lli-----------on -----------sha-----------res----------- * -----------$ 5-----------0 p-----------er -----------sha-----------re -----------= $----------- 50-----------,00-----------0,0-----------00 -----------Ans-----------wer----------- B -----------Mar-----------ket----------- Va-----------lue----------- of----------- De-----------bt -----------= $----------- 20----------- mi-----------lli-----------on -----------* 1-----------01 -----------% =----------- $ -----------20,-----------200-----------,00-----------0 A-----------nsw-----------er