Affected by the domestic housing market over past year

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Reference no: EM131905658

1. Describe how U.S. interest rates have been affected by the domestic housing market over the past year. What do you think has affected interest rates the most?

2. FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. Suppose the common shares sell for $27 per share, the preferred shares sell for $14.50 per share, and the bonds sell for 98 percent of par. What weight should you use for preferred stock in the computation of FarCry’s WACC?

Reference no: EM131905658

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