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52 ou=25070655 spn=Sidic=0.0=248055-48col=Sinb=0 Chris Wagner: Attempt 1
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Question 1 (1 point)
11 If two companies have the same revenues and operating expenses, their net
incomes will still be different it one company finances its assets with more debt and
the other company with more equity.
A True

Creation landscaping has 1,000 bonds outstanding that are selling for $1,280 each. the company also has 2,000 shares of preferred stock outstanding, currently priced at $27.20 a share. the common stock is priced at $37.00 a share and there are 28,000 shares outstanding. what is the weight of the debt as it relates to the firm's weighted average cost of capital?