What weight should you use for preferred stock

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Question: 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 sell for $28 per share, the preferred shares sell for $15 00 per share, and the bonds sell for 98 percent of par. What weight should you use for preferred stock in the computation of FarCry's WACC?

Reference no: EM131972917

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