FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. Suppose the common shares are selling for $28 per share, the preferred shares are selling for $15.00 per share, and the bonds are selling for 98 percent of pat What weight should you use for debt in the computation of FarCry's WACC? (Round your answer to 2 decimal places.) Weight used

EBK CFIN
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ISBN:9781337671743
Author:BESLEY
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Chapter16: Financial Planning And Control
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Problem 11-11 Weight of Debt (LG11-4)
FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of
preferred stock outstanding, and 10,000 bonds. Suppose the common shares are selling for $28 per share, the preferred shares are
selling for $15.00 per share, and the bonds are selling for 98 percent of par
What weight should you use for debt in the computation of FarCry's WACC? (Round your answer to 2 decimal places.)
Weight used
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Transcribed Image Text:Problem 11-11 Weight of Debt (LG11-4) FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. Suppose the common shares are selling for $28 per share, the preferred shares are selling for $15.00 per share, and the bonds are selling for 98 percent of par What weight should you use for debt in the computation of FarCry's WACC? (Round your answer to 2 decimal places.) Weight used < Previ 5 of 6 Next >
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