MV corporation has debt with market value of $101 million, common equity with a book value of $102 million, preferred stock worth $17 million outstanding. It’s common equity trades at $46 per share, and the firm has 5.6 million shares outstanding. What weights should MV corporation use in its WACC

MV corporation has debt with market value of $101 million, common equity with a book value of $102 million, preferred stock worth $17 million outstanding. It’s common equity trades at $46 per share, and the firm has 5.6 million shares outstanding. What weights should MV corporation use in its 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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MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The common equity weight for the WACC calculation is __ % ? (Round to two decimal places.)
MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The debt weight for the WACC calculation is __ % ? (Round to two decimal places.)
MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The preferred stock weight for the WACC calculation is __ % ? (Round to two decimal places.)
MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The debt weight for the WACC calculation is 25.74% The preferred stock weight for the WACC calculation is 5.96% The common equity weight for the WACC calculation is __ % ? (Round to two decimal places.)
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