What would be the weights used in the calculation

Assignment Help Finance Basics
Reference no: EM131944786

Question: Better Pie Industries has 3 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 10,000 bonds. Assume the common shares are selling for $44 per share, the preferred shares are selling for $21.50 per share, and the bonds are selling for 98 percent of par. What would be the weights used in the calculation of Better Pie's WACC? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Equity weight

Preferred stock weight

Debt weight

Reference no: EM131944786

Questions Cloud

What are the types of web caching : What are the types of web caching? Explain each type in detail.
What is the net present value of the decision : A bicycle manufacturer currently produces 215,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier
How does the role of inequality in the video relate to other : First, review your readings on alcohol and other drugs, as well as any relevant chapters needed to construct your response below.
Calculate the volume of a rectangular solid : Need c++ program that includes three functions, one each to calculate the volume of a rectangular solid (a block), a sphere, and a cone.
What would be the weights used in the calculation : Assume the common shares are selling for $44 per share, the preferred shares are selling for $21.50 per share, and the bonds are selling for 98 percent of par.
Write a short paper identifying the three domains : Identify courses you will need to complete. general studies with a concentration in business administration - write a short paper identifying the three domains
Explain the role of social workers on an international level : Explain the role of social workers on an international level in relation to the rights of the LGBTQ community.
Circuit switching to the packet switching : Compare the circuit switching to the packet switching. Identify the benefits and limitations of the circuit switching and packet switching methods.
Relational database management system : SQL is a domain-specific language used in programming and designed for managing data held in a relational database management system

Reviews

Write a Review

Finance Basics Questions & Answers

  How to apply multiproduct break-even analysis

Develop a list of at least 7 Internet sites that describe how to apply multiproduct break-even analysis in manufacturing and/or service organizations.

  Plan for retirement

Brothers, Mark and Mike Lalla want to plan for their retirement and need your advice.

  The city street corporations common stock has a beta 12 if

the city street corporations common stock has a beta 1.2. if the risk-free rate is 4.5 percent and the expected return

  Calculate mean and variance of total claim amount

The number of claims N in a year has a discrete distribution: Pr[N=k]=0.1(4-k) for k=0,1,2,3. The amount for each claim has mean 300 and variance 30000. The distribution of amount per claim is independent of N. Calculate the mean and variance of t..

  What is wacc old- wacc new

If this plan were carried out, by how much would the WACC change, i.e., what is WACC Old- WACC NEW?

  Issues regarding the preparation of the budgets

Discuss the issues regarding the preparation of the budgets and why half of the departments liked the process and why the other half did not like the process. Complete the following:

  Bond x is noncallable and has 20 years to maturity a 9

bond x is noncallable and has 20 years to maturity a 9 annual coupon and a 1000 par value. your required return on

  Member of the treasury department

Who are they? Based on the current term (upward-sloping) structure of interest, and current short-term and long-term interest rates, what would be your strategy as a member of the treasury department of any of these corporations? Why?

  Method account for the value of the tax shield on debt

How and why does this method account for the value of the tax shield on debt?

  What is the standard deviation of the stock price

With the current price of $39 per share, simulate the price per share for the next four 3-month periods. What is the average stock price per share in 12 months?

  Company cost of equity capital

Halestorm Corporation's common stock has a beta of 1.29. Assume the risk-free rate is 5.4 percent and the expected return on the market is 12.9 percent.

  Buy stock and protect yourself against a downside movement

Suppose that you wish to buy stock and protect yourself against a downside movement in its price.- What factors will affect your decision?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd