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Weighting of debt capital in tiger capital structure

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Reference no: EM132740245

Tiger Inc. has 1 million outstanding common shares with a book value per share is $10 The current market price is $45 per share. They have also issued bonds with a face value of $10,000,000 that are currently selling at a premium for 105% of their par value. They have no preferred stock.

What weighting of Debt Capital in Tiger's Capital Structure would you use to calculate the WACC?

Provide your answer as a decimal rounded to three decimal places ( e.g 12.3% = .123)

Reference no: EM132740245

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