Rock company has 2 million shares of common equity


Question: Rock Company has 2 million shares of common equity outstanding with a book value of $1 per share, retained earnings of $40 million, and a market value of $56 per share. It has debt with a par value of $38 million that is trading at 102% of par (this is the only debt issue it has). What is the weight of equity to use in a WACC calculation? Answer in decimal form to 3 decimal places.

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Finance Basics: Rock company has 2 million shares of common equity
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