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Weighted average cost of capital

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Reference no: EM131548833

Acme, Inc. has 961,000 shares of common stock outstanding at a market price of $42.69 a share. The company also has 14,000 bonds outstanding that are quoted at 99 percent of face value of $1,000. What weight should be given to the debt when Acme, Inc. computes their weighted average cost of capital?

Reference no: EM131548833

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