What is the present value of the same annuity due

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Question - 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 are selling for $26 per share, the preferred shares are selling for $14.00 per share, and the bonds are selling for 97 percent of par.

What weight should you use for debt in the computation of FarCry's WACC?

If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent, what's the present value of the same annuity due?

Your discount brokerage firm charges $8.80 per stock trade. How much money do you need to buy 180 shares of Pfizer, Inc. (PFE), which trades at $42.62?

Reference no: EM132864972

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