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Problem 1: WACC: Market Value Weights Similar to P9-13 Calculate the firms WACC Type of Capital Market Value. Weight Cost. Weighted Cost Long Long-term debt

Problem 1: WACC: Market Value Weights Similar to P9-13

Calculate the firms WACC

Type of Capital Market Value. Weight Cost. Weighted Cost Long Long-term debt $600,000 .25 x4.5% =__________

Preferred stock 40,000 .25 x11.0% =___________

Common stock 520,000 .50 x15.0% =___________

a. Total market value =__________

b. WACC= __________

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