FarCry Industries, a maker of telecommunications equipment, has 6 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 45,000 bonds. Suppose the common shares are selling for $28 per share, the preferred shares are selling for $15.00 per share, and the bonds are selling for 99 percent of par.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter23: Corporate Restructuring
Section: Chapter Questions
Problem 12P
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FarCry Industries, a maker of telecommunications equipment, has 6 million shares of
common stock outstanding, 4 million shares of preferred stock outstanding, and 45,000
bonds. Suppose the common shares are selling for $28 per share, the preferred shares
are selling for $15.00 per share, and the bonds are selling for 99 percent of par
What weight should you use for debt in the computation of FarCry's WACC? (Round your
answer to 2 declmal places.)
Weight used
Mc
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2 of 8
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五
Transcribed Image Text:FarCry Industries, a maker of telecommunications equipment, has 6 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 45,000 bonds. Suppose the common shares are selling for $28 per share, the preferred shares are selling for $15.00 per share, and the bonds are selling for 99 percent of par What weight should you use for debt in the computation of FarCry's WACC? (Round your answer to 2 declmal places.) Weight used Mc Prev 2 of 8 Type here to search 五
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