Bill's Boards has 6.5 million shares of common stock outstanding, 5.5 million shares of preferred stock outstanding, and 35.00 thousand bonds. If the common shares are selling for $29.60 per share, the preferred share are selling for $18.50 per share, and the bonds are selling for 95.85 percent of par, what would be the weight used for equity in the computation of Bill's WACC?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter9: The Cost Of Capital
Section: Chapter Questions
Problem 7P
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Bill's Boards has 6.5 million shares of common stock outstanding, 5.5 million shares of preferred stock outstanding, and 35.00 thousand bonds. If the common shares are selling for $29.60 per share, the preferred share are selling for $18.50 per share, and the bonds are selling for 95.85 percent of par, what would be the weight used for equity in the computation of Bill's WACC?

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