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Hi can someone solve me please? FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of
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can someone solve me please?
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 FarCry's WACC? Note: Round your answer to 2 decimal places. Suppose that JB Companys has a capital structure of 70 percent equity, 30 percent debt, and that its before-tax cost of debt is 11 percent while its cost of equity is 15 percent. Assume the appropriate weighted-average tax rate is 21 percent and JB estimates that they can make full use of the interest tax shield. What will be JB's WACC? Note: Round your answer to 2 decimal placesStep by Step Solution
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