Question
MV Corporation has debt with market value of $105 million, common equity with a book value of $101 million, and preferred stock worth $17 million
MV Corporation has debt with market value of $105 million, common equity with a book value of $101 million, and preferred stock worth $17 million outstanding. Its common equity trades at $50 per share, and the firm has 6.4 million shares outstanding. What weights should MV Corporation use in its WACC?
a. The debt weight for the WACC calculation is: %.
(Round to two decimal places.)
b. The preferred stock weight for the WACC calculation is: %.
(Round to two decimal places.)
c. The common equity weight for the WACC calculation is: %.
(Round to two decimal places.)
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