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Farcry industries, a maker of telecommunications equipment has 26 million shares of common stock outstanding, 1 million shares of preferred stock outstanding and 10,000 bonds.

Farcry industries, a maker of telecommunications equipment has 26 million shares of common stock outstanding, 1 million shares of preferred stock outstanding and 10,000 bonds. If the common shares sell for $12 per share, the preferred shares sell for $114.50 per share and the bonds sell for 98% of par ($1000). What weight should you use for preferred stock in the computationof Farcrys WACC?

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