MV Corporation has debt with market value of $100 million, common equity with a book value of $97 million, and preferred stock worth $23 million outstanding. Its common equity trades at $45 per share, and the firm has 6.2 million shares outstanding. What weights should MV Corporation use in its WACC? **round to two decimal places**
MV Corporation has debt with market value of $100 million, common equity with a book value of $97 million, and preferred stock worth $23 million outstanding. Its common equity trades at $45 per share, and the firm has 6.2 million shares outstanding. What weights should MV Corporation use in its WACC? **round to two decimal places**
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
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20. MV Corporation has debt with market value of $100 million, common equity with a book value of $97 million, and preferred stock worth $23 million outstanding. Its common equity trades at $45 per share, and the firm has 6.2 million shares outstanding. What weights should MV Corporation use in its WACC?
**round to two decimal places**
Transcribed Image Text:MV Corporation has debt with market value of $100 million, common equity with a book value of $97 million, and preferred stock worth $23 million outstanding. Its
common equity trades at $45 per share, and the firm has 6.2 million shares outstanding. What weights should MV Corporation use in its WACC?
Summer Lo
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The debt weight for the WACC calculation is %. (Round to two decimal places.)
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The preferred stock weight for the WACC calculation is%. (Round to two decimal places.)
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The common equity weight for the WACC calculation is %. (Round to two decimal places.)
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