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Star Trek LLC has 8,000 bonds, two million shares of preferred stock outstanding and seven million shares of common stock outstanding. If the common shares
Star Trek LLC has 8,000 bonds, two million shares of preferred stock outstanding and seven million shares of common stock outstanding. If the common shares are selling for $17 per share, the preferred shares are selling for $13 per share, and the bonds are selling for 105 percent of par, what weight (percentage) should be used for the calculation of the debt, for Star Trek's WACC?
(Hint: To help you figure this out, after you have done your calculations, you can then use the following equation D/E+P+D to get your percentage of debt).
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1 Market value of debt Number of bonds 8000 Selling price 105 of par assume t...
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