**Investment Analysis Exercise**FarCry Industries, a maker of telecommunications equipment, has the following financial details:- **Common Stock:** 2 million shares outstanding, selling for $24 per share- **Preferred Stock:** 1 million shares outstanding, selling for $13 per share- **Bonds:** 10,000 bonds, selling for 97% of par**Question:**Calculate the weight used for equity in the computation of FarCry's Weighted Average Cost of Capital (WACC). *Note: Round your answer to 2 decimal places.***Input Field:**- **Weight used:** [_________] %This exercise will help you understand the components and calculation of WACC, a fundamental concept in corporate finance.

Market value of each capital Capital Number of units Price per unit Value A B C=A*B Common…

Answered: FarCry Industries, a maker of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,0000 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 98 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. Write your answer in percentage.)
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NFG investment company that has 4 million shares outstanding has total assets of $62 million and total liabilities of $12 million. If this investment company charges a load of 3.5%, how much would an investor have to pay to purchase one share? . (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. Suppose the common shares sell for $26 per share, the preferred shares sell for $14.00 per share, and the bonds sell for 97 percent of par.What weight should you use for preferred stock in the computation of FarCry’s WACC? (Round your answer to 2 decimal places.)
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FarCry Industries, a maker of telecommunications 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 $28 per share, the preferred shares are selling for $15.00 per share, and the bonds are selling for 99 percent of par What weight should you use for debt in the computation of FarCry's WACC? (Round your answer to 2 declmal places.) Weight used Mc Prev 2 of 8 Type here to search 五

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