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Weight used for equity in the computation

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Cry 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 are selling for $25 per share, the preferred shares are selling for $13.50 per share, and the bonds are selling for 97 percent of par.

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

Reference no: EM132507248

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