The wilson bat company has, at market value, $300,000 in bonds and $700,000 in stock outstanding. the coupon rate on the debt, which is currently selling at par, is 7%. the company's current stock price is $20, with an equity beta of 1.
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Luciana is the owner of a nail salon. Last year, her total revenue was $145,000, her rent was $12,000, her labor costs were $65,000, and her overhead expenses were $15,000.
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