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1. MV Corporation has debt with market value of $100 million, common equity with a book value of $100 million, and preferred stock worth $20

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1. MV Corporation has debt with market value of $100 million, common equity with a book value of $100 million, and preferred stock worth $20 million outstanding. Its common equity trades at $50 per share, and the firm has 6 million shares outstanding What weights should MV Corporation use in its WACC? 2. Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.5. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets 1000 Liabilities and Equity Debt Equity 600 400

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