Your company has the following capital structure: 1. 11.0 million shares of common stock priced at...

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Your company has the following capital structure: 1. 11.0 million shares of common stock priced at $23.82/share 2. 3.6 million shares of preferred stock that pays a 6.7% dividend (par value = $100) and is currently priced at $104/share 3. 200,000 outstanding bonds. The bonds mature in 10 years, have a par (face) value of $1,000, a 7% annual coupon, and a yield to maturity of 8.25%. What is the MV weight of Debt your company would use in its WACC calculation? Your company has the following capital structure: 1. 11.0 million shares of common stock priced at $23.82/share 2. 3.6 million shares of preferred stock that pays a 6.7% dividend (par value = $100) and is currently priced at $104/share 3. 200,000 outstanding bonds. The bonds mature in 10 years, have a par (face) value of $1,000, a 7% annual coupon, and a yield to maturity of 8.25%. What is the MV weight of Debt your company would use in its WACC calculation?

Answer rating: 100% (QA)

To ascertain the market esteem MV weight of obligation for the WACC Weighted Normal Expense of Capital computation we want to decide the absolute mark... View the full answer