Star Trek LLC has 8,000 bonds, two million shares of preferred stock outstanding and seven million shares
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Question:
Star Trek LLC has 8,000 bonds, two million shares of preferred stock outstanding and seven million shares of common stock outstanding. If the common shares are selling for $17 per share, the preferred shares are selling for $13 per share, and the bonds are selling for 105 percent of par, what weight (percentage) should be used for the calculation of the debt, for Star Trek's WACC?
(Hint: To help you figure this out, after you have done your calculations, you can then use the following equation D/E+P+D to get your percentage of debt).
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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