What weight should you use for debt

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Question - Supersonic Spaceship Manufacturing, Inc., has 8 million shares of common stock outstanding, 5 million shares of preferred stock outstanding, and 7,000 bonds. If the common shares are selling for $23 per share, the preferred shares are selling for $18.60 per share, and the bonds are selling for 99 percent of par, what weight should you use for debt when calculating Supersonic's WACC?

Reference no: EM131588557

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