Use for preferred stock in computation of FarCrys WACC

Assignment Help Financial Management

Reference no: EM131613136

FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. Suppose the common shares sell for $28 per share, the preferred shares sell for $15.00 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? (Round your answer to 2 decimal places.)

Weight used %

Reference no: EM131613136

Questions Cloud

Estimate the equivalent annual cost of these computers : The estimated cost to purchase and maintain 20 computers is $20,000; $30,000; $30,000; estimate the equivalent annual cost of these computers.

Create a timeline that shows four technological developments : Create a timeline that shows four technological developments that have had an impact on the way that people seek out marriage or life partners.

Transition from volume-based to value-based healthcare : Review at least one peer reviewed, profession journal article or detailed news article discussing government mandates for health care such as the 2009 HITECH.

What will be the effect on cash flows of sale : If your company’s marginal tax rate is 40 percent, what will be the effect on cash flows of this sale.

Use for preferred stock in computation of FarCrys WACC : What weight should you use for preferred stock in the computation of FarCry’s WACC?

Evaluate the role of the federal government : Evaluate the role of the Federal government, if any, related to the regulation of investments by financial institutions including the scope of the role.

What is meant by the term neoclassical counterrevolution : Which measure shows more equality among countries around the world-GNI calculated at exchange rates or GNI calculated at purchasing power parity? Explain.

Review and analysis the provided incident response plan : Review and analysis the provided Incident Response Plan in comparison to what you have read in the Incident Response Planning section.

What is the beta of portfolio : You own $6,384 of Olympic Steel stock that has a beta of 2.98. What is the beta of your portfolio?

User Account

All Pages