Question
Mega Stores has 600,000 common shares outstanding which are selling for a price of $43 per share. The firm has 35,000 preferred shares selling for
Mega Stores has 600,000 common shares outstanding which are selling for a price of $43 per share. The firm has 35,000 preferred shares selling for $105 per share and 25,000 outstanding $1000 par value bonds which are selling for 95 percent of par. What are the weights to use for the firm's WACC?
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Common Stock Weight 43 x 600000 25800000 Preferred Stock Weight 105 x 35000 3675000 Bon...
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
