A firm has 12,000 shares of common stock outstanding with a market value of $41 per share. There are 5,000 shares of preferred stock with a market value of $25. There is a $400,000 face value bond issue outstanding that is selling at 88% of par. What weight should be placed on the preferred stock when computing the firm's WACC?

Q: Dewyco has preferred stock trading at $54 per share. The next preferred dividend of $4 is due in…

A: Cost of capital for preferred stock = Preferred dividend / Stock price where, Preferred dividend =…

Q: What would be the weight used for equity in the computation of FarCry's WACC? (Round your answer to…

A: WACC: It is the weighted rate that the business has to pay for raising each capital proportionally.…

Q: the investor's required rate of return is 14 percent, the expected level of earnings at the end of…

A: Given,  P/E ratio = 9.091 times Required rate of return , Ke= 14% Expected level of earnings, E1 =…

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A: Right shares are issued to the existing shareholders to raise money for growth and expansion of the…

Q: OMG Inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock…

A: Debt is the obligation for the company reported in the balance sheet of the company.

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A: Common stock consist of the par value of the share and paid-in capital is the excess amount on par…

Q: Ginger Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the…

A: Cost of equity can be calculated by using dividend growth model and also can be calculated based on…

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A: WACC or Weighted average cost of capital is the sum of market value weighted cost of the capitals…

Q: A firm has 29,000 shares of common outstanding with a market value of $45.5 per share and a book…

A: Number of common stock = 29000 Market value per share = $45.5 Number of Preferred  Stock = 7000 Book…

Q: Using the following information calculate the WACC of Aqua Ltd. The company has 0.3 million shares…

A: The Weighted average cost of capital(WACC) refers to the financial ratio that calculates the overall…

Q: Team Sports has 5.2 million shares of common stock outstanding, 3.2 million shares of preferred…

A: Calculation of Weight of Common Stock:The weight of common stock is 20.74%.Excel Spreadsheet:

Q: Here are data on two stocks, both of which have discount rates of 10%: Return on equity Earnings per…

A: The objective of the question is to calculate the dividend payout ratio, expected dividend growth…

Q: om and Jerry's has 3.4 million shares of common stock outstanding, 3.4 million shares of preferred…

A: The question is to calculate the weight of equity in total value of firm or total market value of…

Q: d Contractors has 4.5 million shares of common stock outstanding, 1 million shares of preferred…

A: The Weighted Average Cost of Capital (WACC) of a company is the total cost of capital, including…

Q: Ginger Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the…

A: STEP 1 a) DGM Method The Dividend Growth Model simulates the anticipated future dividends due to…

Q: FarCry Industries, a maker of telecommunications equipment, has 26 million shares of common stock…

A: Weighted average cost of capital is the average cost of capital raised from various sources such as…

Q: MAX plans to issue common stock to the public at $80. The last paid dividend was $3 per share…

A: Share price = $ 80 Last dividend = $ 3 Growth rate = 5% Next dividend = 3*(1+0.05) = $ 3.15…

Q: Sports Corp has 11.4 million shares of common stock outstanding, 6.4 million shares of preferred…

A: WACC refers to the weighted average cost of capital. It is the rate which a company is expected to…

Q: Team Sports has 4.9 million shares of common stock outstanding, 2.9 million shares of preferred…

A: The question is related to Cost of Capital. The weight will be calculated based on market value.…

Q: analyst has obtained the following information Book value of long-term sources of capital: $25,000…

A: Relevant information: To compute the WACC, the market value of the components will be used. Book…

Q: Your company is considering a $1,200,000 capital project that will generate a before tax cash flow…

A: As per the Q&A guidelines, if multiple questions are asked at once, then the first question will…

Q: Using the following information calculate the WACC of Aqua Ltd. The company has 0.3 million shares…

A: WACC = (Weight of debt * cost of debt) + (Weight of preferred * Cost of preferred) + (Weight of…

Q: FarCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock…

A: WACC is also known as weighted average cost of capital. It is the total cost which includes the cost…

Q: OMG Incorporated has 4 million shares of common stock outstanding, 3 million shares of preferred…

A: ParticularsNumber of sharesMarket priceCommon share4,000,000.00$17.00Preferred…

Q: FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock…

A: WACC is a firm's cost of capital that is proportionally weighted by capital type. WACC is often used…

Q: A preferred stock from Hecla Mining Company pays $3.50 in annual dividends If the required return on…

A: The provided information are: Annual dividend per share (D) = $3.50 Rate of return (r)= 6.8% = 0.068

Q: Marme, Inc. has preferred stock selling for 96 percent of par that pays an 11 percent annual coupon.…

A: Annual coupon payment=11%Selling price=96% of ParRequired:Cost of Preferred Stock=

Q: Nelson's Landscaping has 1,200 bonds outstanding that are selling for $990 each. The company also…

A: The weighted average cost of capital is a financial measure that represents the average cost of a…

Q: te.3 Paper Exchange has 80 million shares of common stock outstanding, 60 million shares of…

A: The objective of the question is to calculate the weight of preferred stock in the computation of…

Q: Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 5.00 percent that…

A: Step 1 Preferred stock is a type of stock that is given unique rights from common stock.

Q: Dewyco has preferred stock trading at $53 per share. The next preferred dividend of $4 is due in one…

A: Cost of capital for a preferred stock can be calculated as dividend yield of a share.  Formula as:…

Q: FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock…

A: WACC stands for a weighted average cost of capital, which is the total cost of a company's capital…

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A: Cost of Equity is calculated by Capital Asset Pricing Model.W is for weight of each component of…

Q: A company issued preferred stock with a stated dividend of 15% of par value. Par value of this stock…

A: Preferred stock is the stock which entitle the fixed dividend to the stock holders whose payments…

Q: A firm has 600,000 common shares outstanding which are selling for a price of $36 per share. The…

A: WACC refers to the company's average return to its stakeholders (debt, common shares, and preference…

Q: If a firm’s equity is valued at $50 million and it has 500,000 shares of stock issued and…

A: Given Value of equity = $50 million Shares outstanding = 500,000

Q: IRQ has common stock outstanding, which is trading at $25 per share. IRQ paid a dividend yesterday…

A: Last Dividend = $2.22 Growth rate = 0.03 Current stock price = $25 Cost of common equity = ?

Q: (Cost of preferred stock) The preferred stock of Walter Industries Inc. currently sells for $36.46 a…

A: Cost of capital for preferred stock of the firm is defined as the rate of return, which actually…

Q: OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock…

A: A fixed dividend rate is frequently attached to preference shares, which indicates that the dividend…

Q: Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 3.80 percent that…

A: Calculation of cost of preferred stock:

Q: common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ What…

A: The objective of the question is to calculate the price of a share of the company's common stock and…