Problem:
Book co. has 1.5 million shares of common stock equity with a par (book) value of $1.40, retained earnings of $28.1 million, and its shares have a market value of $51.74 per share. it also has debt with a par value of $19.1 million that is trading at 104% of par.
Required:
Question: What is the market value of its equity?
Question: What is the market value of its debt?
Question: What weights should it use in computing its WACC?
Note: Please provide through step by step calculations.