Book Co. has 1.7 million shares of common equity with a par? (book) value of $ 1.10 and retained earnings of $ 30.7 million, and its shares have a market value of $ 51.53 per share. It also has debt with a par value of $ 18.6 million that is trading at 101 % of par.
a. What is the market value of its? equity?
b. What is the market value of its? debt?
c. What weights should it use in computing its? WACC?