What would be the weight used for equity in the computation of FarCry's WACC? (Round your answer to 2 decimal places.)

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...
Question
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 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 would be the weight used for equity in the computation of FarCry's WACC? (Round your answer to 2 decimal places.)
Weight used
%
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Transcribed Image Text: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 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 would be the weight used for equity in the computation of FarCry's WACC? (Round your answer to 2 decimal places.) Weight used % < Prev 7 of 15 Next >
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