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What weight should use for debt in computation of farcry

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Question 1: FarCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 20,000 bonds. Suppose the common shares are selling for $29 per share, the preferred shares are selling for $15.50 per share, and the bonds are selling for 98 percent of par. What weight should you use for debt in the computation of FarCry's WACC?

Reference no: EM132498925

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