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    Capital structure weights

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    Suppose that Lil John Industries' equity is currently selling for $37 per share and that there are 2 million shares outstanding. If the firm also has 50 thousand bonds outstanding, which are selling at 103 percent of par, what are the firm's current capital structure weights?

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    Solution Preview

    Capital structure weights are the proportion of capital components - debt and equity in the capital structure.
    We calculate the market ...

    Solution Summary

    The solution explains how to determine the capital structure weights