What is the best estimate for the weights to be used

Reference no: EM131923049

Question: The balance sheet for OUS Corp is shown below. The bonds are currently selling at 97.5% of par. There are 500 shares of preferred stock outstanding and it has a current market price of $11.20. There are 6,000 shares of common stock outstanding and the latest quote was $32.35. What is the best estimate for the weights to be used when calculating the WACC?

Balance Sheet as of 12/31/11

Cash	10,000	Accounts payable	20,000
Marketable securities	20,000	Notes payable	10,000
Accounts Receivable	25,000	Accruals	15,000
Inventory	40,000	Total current liabilities	45,000
Total Current Assets	95,000	Long term bonds	10,000
		Preferred Stock	5,000
		Common stock (par + PIC)	50,000
		Retained earnings	30,000
Net fixed assets	45,000	Total common equity	80,000

Total assets	140,000	Total liabilities & equity	140,000

Reference no: EM131923049

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