What would be the weight used for equity in the computation

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Reference no: EM131896894

Weight of Equity

FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 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 would be the weight used for equity in the computation of FarCry’s WACC?

Weight used =

Reference no: EM131896894

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