Weight of Debt FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock

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Weight of Debt FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 mil- lion shares of preferred stock outstanding, and 10,000 bonds. If the common shares are selling for $27 per share, the preferred shares are selling for $14.50 per share, and the bonds are selling for 98 percent of par, what weight should you use for debt in the computation of FarCry's WACC? (LG4)

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Finance Applications And Theory

ISBN: 9780073530673

2nd Edition

Authors: Marcia Cornett, Troy Adair, John Nofsinger

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