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FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 1 0

FarCry Industries, a maker of telecommunications equipment, has
2 million shares of common stock outstanding, 1 million shares of
preferred stock outstanding, and 10,000 bonds. Suppose 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 FarCrys WACC?

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