equipment, has 6 million shares of common stock outstanding, 4 million shares of
ID: 2798822 • Letter: E
Question
equipment, has 6 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 45,000 bonds. Suppose the common shares are selling for $27 per share, the preferred shares are selling for $14.50 per share, and the bonds are selling for 99 percent of par. What would be the weight used for equity in the computation of FarCry’s WACC? (Round your answer to 2 decimal places.) Weight used % equipment, has 6 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 45,000 bonds. Suppose the common shares are selling for $27 per share, the preferred shares are selling for $14.50 per share, and the bonds are selling for 99 percent of par. What would be the weight used for equity in the computation of FarCry’s WACC? (Round your answer to 2 decimal places.) Weight used % equipment, has 6 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 45,000 bonds. Suppose the common shares are selling for $27 per share, the preferred shares are selling for $14.50 per share, and the bonds are selling for 99 percent of par. What would be the weight used for equity in the computation of FarCry’s WACC? (Round your answer to 2 decimal places.) Weight used %Explanation / Answer
Total value of common stock=(6*27)=$162million
Total value of preferred stock=(4*14.5)=$58million
Total value of bonds=45000*(1000*99%)=$44.55million
Total=$264.55million
Hence weight used for equity=(162/264.55)
which is equal to
=61.24%(Approx).
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