fin 305 ch 11 q 14 WhackAmOle has 5 million shares of common stock outstanding,
ID: 2717735 • Letter: F
Question
fin 305 ch 11 q 14
WhackAmOle has 5 million shares of common stock outstanding, 4.0 million shares of preferred stock outstanding, and 100,000 bonds. Assume the common shares are selling for $59 per share, the preferred shares are selling for $48.00 per share, and the bonds are selling for 107 percent of par.
What would be the weights used in the calculation of WhackAmOle’s WACC? (Do not round intermediate calculations and round your answers to 2 decimal places.)
What would be the weights used in the calculation of WhackAmOle’s WACC? (Do not round intermediate calculations and round your answers to 2 decimal places.)
Explanation / Answer
Particulars Numbers Selling Price Total Value Common Stock 5000000 59 295000000 Preferred Stock 4000000 48 192000000 Bonds 100000 107% 107000 Total 487107000 Particulars Investment Weights Equity Weight 295000000 60.56% Preferred Stock Weight 192000000 39.42% Debt Weight 107000 0.02%
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