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How do I do this and what are the steps? Puma has 9,000 shares of common stock outstanding with a book value of $30 and
How do I do this and what are the steps?
Puma has 9,000 shares of common stock outstanding with a book value of $30 and a market value of $55 per share. It also has 5,000 shares of preferred stock with a book value of $10 and a market value of $30. There is a $235,000 face value bond issue outstanding that is selling at 91% of par. What weight should be placed on the preferred stock when computing the firm's WACC?
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