Far Cry Industries, a maker of telecommunications equipment, has 3 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. Suppose the common shares are selling for $25 per share, the preferred shares are selling for $13.50 per share, and the bonds are selling for 97 percent of par. What weight should you use for debt in the computation of FarCry s WACC?

MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The debt weight for the WACC calculation is __ % ? (Round to two decimal places.)

MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The common equity weight for the WACC calculation is __ % ? (Round to two decimal​ places.)

Consider this example: Shares of Ex Why Zee, Inc. (ticker symbol: XYZ) are currently trading at $6 per share. XYZ plans to issue $6M in short term debt and use the money they borrow to repurchase $6M worth of their own stock. What effect will the debt issuance and share repurchase have on the balance sheet? There isn't enough information to answer this question Assets will increase by $6M Liabilities will decrease by $6M Number of Shares Outstanding will increase by 1 million Equity will decrease by $6M

Assume Lavender Corporation has a market value of $4 billion of equity and a market value of $19.8 billion of debt.  What are the weights in equity and debt that are used for calculating the WACC?

MV Corporation has debt with market value of $100 million, common equity with a book value of $104 million, and preferred stock worth $22 million outstanding. Its common equity trades at $54 per share, and the firm has 6.4 million shares outstanding. What weights should MV Corporation use in its WACC? The debt weight for the WACC calculation is __% ? The preferred stock weight for the WACC calculation is __% ? The common equity weight for the WACC calculation is __% ?

You plan to purchase debenture bonds from one of two companies in the same industry that are similar in size and performance.  The first company has $800,000 in total liabilities, and $1,200,000 in equity.  the second company has $600,000 in total liabilities, and $400,000 in equity.  2. Which company's debenture bonds are less risky based on the debt-to-equity ratio? Explain. Show your calculations to support your decision.

What is techstars market debt equity ratio?

Suppose that Papa Bell, Inc.’s equity is currently selling for $50 per share, with 3.5 million shares outstanding. Assume the firm also has 12,000 bonds outstanding, and they are selling at 94 percent of par.What are the firm’s current capital structure weights?        Capital Structure Weights Equity   % Debt   %

Let's go back to the Double-R Nutting Company. Suppose that Double-R's bonds have a face value of $61. Its current market-value balance sheet is: Assets Book-Value Balance Sheet Liabilities and Equity Net working capital Fixed assets $ 75 Bonds outstanding $ 80 65 Common stock 60 Total assets $ 140 Total liabilities and shareholders' equity $ 140 Who would gain or lose from the following maneuvers? a. Double-R pays a $65 cash dividend. b. Double-R halts operations, sells its fixed assets for $17, and converts net working capital into $75 cash. It invests its $92 in Treasury bills. c. Double-R encounters an investment opportunity requiring a $65 initial investment with NPV = $0. It borrows $65 to finance the project by issuing more bonds with the same security, seniority, and so on, as the existing bonds. d. Double-R finances the investment opportunity in part (c) by issuing more common stock. Stockholders a. b. C. d. Bondholders