FarCry 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 $24 per share, the preferred shares are selling for $13.00 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? (Round your

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
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FarCry 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 $24 per share, the preferred shares
are selling for $13.00 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? (Round your
answer to 2 decimal places.)
Weight used
pe here to search
近
TL
Transcribed Image Text:FarCry 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 $24 per share, the preferred shares are selling for $13.00 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? (Round your answer to 2 decimal places.) Weight used pe here to search 近 TL
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