Company X Has 2 Million Shares of Common Stock Outstanding

question 29

Multiple Choice

Company X has 2 million shares of common stock outstanding at a book value of $2 per share. The stock trades for $3 per share. It also has $2 million in face value of debt that trades at 90% of par. What is the weight of debt for WACC purposes?

• A) 13.91%
• B) 23.08%
• C) 31.03%
• D)27.67%

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Definitions:

Racism Against Blacks

Prejudice, discrimination, or antagonism directed at individuals of African descent, based on the belief in their inferiority.

Police-Citizen Encounters

Interactions between police officers and civilians, which can range from routine traffic stops to emergency response situations.

Frequency Of Arrests

The rate or number of times individuals are apprehended by law enforcement over a specific period, often used as an indicator in crime statistics.

General Social Survey

A sociological survey conducted in the United States to collect data on demographic characteristics, behaviors, attitudes, and opinions of the general population.