Find the weight of long-term debt and common shares

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Reference no: EM132033925

ABC company has a total debt of $500,000. The Long Term Debit is 50% of the Total Debt of the comapny and its cost of capital is 9.5%. ABC company also has 15,000 oustanding shares that are being sold for $6.00 each, and 4,000 in preferred shares selling at $25.00 each.

Find the weight of Long-term debt, common shares, and preferred shares for ABC company.

Reference no: EM132033925

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