A firm has a capital structure of 40% common stock, 10% preferred stock, and 50% debt. A new project is being internally funded. What weight should be used for equity in the project WACC? оооо 40% $30,000/$40,000, of 75% 50% O $30,000/($30,000+ $40,000), or 43%

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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A firm has a capital structure of 40% common stock, 10% preferred stock, and 50% debt. A new project is being internally funded. What weight should be used for
equity in the project WACC?
O O O O
O 40%
100
O $30,000/$40,000, of 75%
O 50%
O $30,000/($30,000+ $40,000), or 43%
Transcribed Image Text:A firm has a capital structure of 40% common stock, 10% preferred stock, and 50% debt. A new project is being internally funded. What weight should be used for equity in the project WACC? O O O O O 40% 100 O $30,000/$40,000, of 75% O 50% O $30,000/($30,000+ $40,000), or 43%
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