Question: FarCry Industries a maker of telecommunications equipment has two million

FarCry Industries, a maker of telecommunications equipment, has two million shares of common stock outstanding, one million shares of preferred stock outstanding, and 10,000 bonds. If the common shares sell for $27 per share, the preferred shares sell for $14.50 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?

  • CreatedSeptember 23, 2014
  • Files Included
Post your question