FarCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock outstanding. 2 million shares of preferred stock outstanding, and 20,000 bonds. Suppose the common shares are selling for $26 per share, the preferred shares are selling for $14.00 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

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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FarCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock outstanding. 2 million shares of
preferred stock outstanding, and 20,000 bonds. Suppose the common shares are selling for $26 per share, the preferred shares are
selling for $14.00 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
%
Transcribed Image Text:FarCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock outstanding. 2 million shares of preferred stock outstanding, and 20,000 bonds. Suppose the common shares are selling for $26 per share, the preferred shares are selling for $14.00 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 %
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