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Equity in the computation of farcry wacc

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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 $27 per share, the preferred shares are selling for $14.50 per share, and the bonds are selling for 99 percent of par.

What would be the weight used for equity in the computation of FarCry's WACC?

Reference no: EM132354591

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