1. A firm has 1 million shares outstanding with a book value per share of $10 per share. The stock sells for a price of $20 per share. The firm’s bonds have a par value of $8 million and are currently selling at a price of 120 percent of par. What is the appropriate proportion of equity to use in the WACC calculation?
71.4 percent
67.6 percent
48.0 percent
51.0 percent
55.6 percent
2. Which definition is most often used by employer sponsored long term disability insurance?
Every Occupation
Any Occupation
Own Occupation
Regular Occupation