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MV corporation has debt with market value of $200 million, common equity with a book value of $200 million and prefeered stock worth $40 million.

MV corporation has debt with market value of $200 million, common equity with a book value of $200 million and prefeered stock worth $40 million. If its common stock trades at $70 per share and the corportation has 8 million shares outstanding, what weights should MV use in its WACC?
WACC = Kd(1-T)Wd + KpWp +KeWe
1 What is the Market Cap? $560,000,000.00
a Market Value of debt =
b Market Value of Preferred stock =
c Market Value of Common Equity =
Total market Value =
Find out followings
a Wd= weight in Debt
b Wp = weioght in Preferred
c We= weight in Common Equity
Quick check: The Ws should all add up to 1.00 or 100%
2 Is this company Levered?
3 Are they utilizing financial leverage in their capital structure?

WACC = Kd(1-T)Wd + KpWp +KeWe
Portland PetCo has debt with a yield to maturity of 8%, a cost of equity of 14% and a cost of preferred stock of 10%. The market value of its debt, prefered stock, and equity are $11 million, $4 million, and $13 million, respectively, and its tax rate is 40%. What is this firm's after -tax WACC?
Total Value = $28 Million

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