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Suppose Corporation A has a book (face) debt value of $13M, trading at 80% of face value. It also has book equity of $19 million,
Suppose Corporation A has a book (face) debt value of $13M, trading at 80% of face value. It also has book equity of $19 million, and 2.66 milion shares of common stock trading at $26 per share. What is the weight for for common equity that Corporation A should use in calculating its WACC? NOTE: Answer in percentages. That is, if your answer is 90% or 0.90, you should answer 90.00, not 0,90 QUESTION 4 7 points Suppose Corporation A has a book (face) debt value of $8M, trading at 76% of face value. It also has book equity of $19 million, and 2.54 million shares of common stock trading at $28 per share. What is the weight for debt that Corporation A should use in calculating its WACC NOTE: Answer in percentages. That is, if your answer is 90% or 0.90, you should answer 90.00, not 0,90 7 points QUESTIONS firm issues preferred dividends at an annual rate of $3.06. its current preferred stock price is $22.6. Assume that the eaulty beta for Il is 0.93. The Yield on 10-vear treasurles is 2.74%, and that the market risk premium for the year is 7%. The company's EPS expected growth is 3%. For this year, the dividends for j firm are the same for common and preferred stock, additionally the price for common stock is $28. What is the preferred cost of equity for Firm? NOTE: Answer in percentages. That is, if your answer is 90% or 0.90, you should answer 90.00, not 0,90
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