What weight should you use for debt in the computation

Reference no: EM13294412

FarCry Industries, a maker of telecommunications equip-ment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. If the common shares are selling for $ 27 per share, the preferred shares are selling for $ 14.50 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: EM13294412

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