What weight should you use for preferred stock in compution

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Reference no: EM131884449

Weight of Preferred Stock

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 sell for $24 per share, the preferred shares sell for $13.00 per share, and the bonds sell for 97 percent of par.

What weight should you use for preferred stock in the computation of FarCry’s WACC? (Round your answer to 2 decimal places.)

Weight used %

Reference no: EM131884449

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