Shares of preferred stock-common stock outstanding

Assignment Help Financial Management
Reference no: EM131327648

WhackAmOle has 2 million shares of common stock outstanding, 1.5 million shares of preferred stock outstanding, and 50,000 bonds. Assume the common shares are selling for $65 per share, the preferred shares are selling for $54.00 per share, and the bonds are selling for 105 percent of par. What would be the weights used in the calculation of WhackAmOle’s WACC? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Equity weight % Preferred stock weight % Debt weight %

Reference no: EM131327648

Questions Cloud

Outline a communications plan the company could use : BUS 499- Outline a communications plan the company could use to make the strategies you recommend above known to all stakeholders.
How are profit eliminated in a perfectly competitive market : What do think would happen to competition in the industry where you work if, say, a certain number of firms would close down? What would happen to their price-making ability?
Explain why you chose the innovation or technology : you have been introduced to hundreds of technological innovations through our weekly readings and discussions. Take a moment to think back over the technologies and ideas that impressed you the most. Now think on a global basis. What one innovatio..
Discuss three of hofstedes national culture dimensions : Discuss three of Hofstede's national culture dimensions. What are some of the implications of these dimensions for international business?
Shares of preferred stock-common stock outstanding : WhackAmOle has 2 million shares of common stock outstanding, 1.5 million shares of preferred stock outstanding, and 50,000 bonds. Assume the common shares are selling for $65 per share, the preferred shares are selling for $54.00 per share, and the b..
Does national culture affect business culture : What is business culture? Does national culture affect business culture? Discuss some implications of national culture for business culture.
What drives the demand for any product : Elasticity measures how responsive consumers are to various changes. These include changes to the price of the product, to the price of substitute products, and even to changes in their own incomes.
Who is the author intended audience : Identify the author's main points. Who is the author's intended audience? Describe how the brain has been implicated in schizophrenia. Describe the clinical symptoms of schizophrenia, including positive, negative, and disorganized symptoms
A treasury bond is listed in the bloomberg terminal : A Treasury bond is listed in The Bloomberg Terminal at a price of 103:26. What does this mean – in terms of the actual price (put your answer in terms of a price that is % of the face value - i.e. FV=100).

Reviews

Write a Review

Financial Management Questions & Answers

  Discuss how we actually derive a budget

Let's discuss how we actually derive a budget. Discuss the five basic steps of budgeting and how each are determined. What are some of the difficulties that can arise in this process, specifically for HCO's?

  Assume the market is in equilibrium with the required return

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.75 coming 3 years from today. The div..

  Choose an organization as the focus for a project proposal

choose an organization as the focus for a project proposal. the organization can be an existing company nonprofit

  Present value of this stream of cash flows

The state lottery's million dollar payout provides for $2 million to be paid over 24 years in 25 payments of $80,000. The first $80,000 payment is made immediately, and the 24 remaining $80,000 payments occur at the end of each of the next 24 years. ..

  Define the financial planning process for most organizations

Determine the key factors that will drive the financial planning process for most organizations in the post-merger phase, and examine the related impact to the organization process. Provide support for your rationale.

  Average asset duration

A bank has average asset duration of 4.7 years and an average liability duration of 3.3 years. This bank has $750 million in total assets and $500 million in total liabilities.

  Same regardless of the payoff formulation of the option

You are given the following information. S=50, X=50, simple annual risk-free interest rate is 5%, standard deviation of monthly stock returns is 10%. What is the price of a one-year exotic option that pays max(0, X – S^0.5 )? Please use a three perio..

  Present value annuity payment interest rate

For each of the following annuities, calculate the present value. (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present Value Annuity Payment In..

  What is the standard deviation of the stock returns

You find a certain stock that had returns of 11 percent, −14 percent, 23 percent, and 19 percent for four of the last five years. The average return of the stock over this period was 10.48 percent. What was the stock’s return for the missing year? Wh..

  What are the disadvantages of issuing preferred stock

Preferred stock is not a common source of financing for most firms. However, it should be ignored as a potential source of capital. What is preferred stock and why is it beneficial to corporations? What are the disadvantages of issuing preferred stoc..

  What are the balances in the three stockholders equity

On October 1st Martin Corp have the following balance in stockholders’ equity. What are the balances in the three stockholders equity accounts after the new shares have been distributed? What, if any, is the new par value?

  Prepare a statement showing the incremental cash flows

Prepare a statement showing the incremental cash flows

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd