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The following information comes from the balance sheet of Ro equity equals $150,000, preferred stock has a value of $50,000 and long-term debt totals $200,000. For purposes of estimating the firm's WACC, what are the weights of long-term debt, preferred stock, and equity? Debt 50%, Preferred = 12.5%, and Equity=37.5% Debt=52.17%, Preferred = 13.48%, and Equity=34.35% Debt 52.17%, Preferred = 4.35%, and Equity = 43.48% Debt 35.15%, Preferred = 4.70%, and Equity = 60.15% Debt 35.15%, Preferred = 14.35%, and Equity = 50.5%

The following information comes from the balance sheet of Ro equity equals $150,000, preferred stock has a value of $50,000 and long-term debt totals $200,000. For purposes of estimating the firm's WACC, what are the weights of long-term debt, preferred stock, and equity? Debt 50%, Preferred = 12.5%, and Equity=37.5% Debt=52.17%, Preferred = 13.48%, and Equity=34.35% Debt 52.17%, Preferred = 4.35%, and Equity = 43.48% Debt 35.15%, Preferred = 4.70%, and Equity = 60.15% Debt 35.15%, Preferred = 14.35%, and Equity = 50.5%

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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The following information comes from the balance sheet of Ro equity equals $150,000, preferred stock has a value of $50,000 and long-term debt totals $200,000. For purposes of estimating the firm's WACC, what are the weights of long-term debt, preferred stock, and equity? Debt 50%, Preferred = 12.5%, and Equity=37.5% Debt=52.17%, Preferred = 13.48%, and Equity=34.35% Debt 52.17%, Preferred = 4.35%, and Equity = 43.48% Debt 35.15%, Preferred = 4.70%, and Equity = 60.15% Debt 35.15%, Preferred = 14.35%, and Equity = 50.5%
Transcribed Image Text:The following information comes from the balance sheet of Ro equity equals $150,000, preferred stock has a value of $50,000 and long-term debt totals $200,000. For purposes of estimating the firm's WACC, what are the weights of long-term debt, preferred stock, and equity? Debt 50%, Preferred = 12.5%, and Equity=37.5% Debt=52.17%, Preferred = 13.48%, and Equity=34.35% Debt 52.17%, Preferred = 4.35%, and Equity = 43.48% Debt 35.15%, Preferred = 4.70%, and Equity = 60.15% Debt 35.15%, Preferred = 14.35%, and Equity = 50.5%
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