Sports Corp has 11.4 million shares of common stock outstanding, 6.4 million shares of preferred stock outstanding, and 2.4 million bonds. If the common shares are selling for $26.4 per share, the preferred share are selling for $13.9 per share, and the bonds are selling for 96.86 percent of par, what would be the weight used for equity in the computation of Sports's WACC?   Multiple Choice   56.44%   11.09%   33.33%   12.47%

Q: One company has the following debt and equity: Common stock: 500,000 shares outstanding, selling for…

A: Cost of capital to the company is weighted average cost of capital. It is also called as WACC.

Q: West Wind, Inc. has 5,300,000 shares of common stock outstanding with a market value of $80 per…

A: When a company feels that its stock is trading at high price because of which investors are not…

Q: The following question is based on the following information about the stocks of Whitestone REIT,…

A: Given,   Price Dividend Yield REIT 16 7 HCC 56 2 SNDK 80 2 Let x be shares of REIT, y be…

Q: Kim's Bridal Shoppe has 10,800 shares of common stock outstanding at a price of $42 per share. It…

A: There are three sources of finance in the firm. These are common stock preferred stock and bonds. It…

Q: OMG Inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock…

A: Debt is the obligation for the company reported in the balance sheet of the company.

Q: what is the new number of shares outstanding and the new market price?

A: Given information is: XYZ Company has 30,000 shares of $3 par common stock outstanding, which are…

Q: A corporation purchases 5,595 shares of its own $3 par common stock for $25 per share, recording it…

A: Stockholders’ Equity (SE): Stockholders Equity refers to the right the owner possesses over the…

Q: A firm has 29,000 shares of common outstanding with a market value of $45.5 per share and a book…

A: Number of common stock = 29000 Market value per share = $45.5 Number of Preferred  Stock = 7000 Book…

Q: Filer Manufacturing has 9,839,969 shares of common stock outstanding. The current share price is…

A: Market value  Market value is the word used to define the total value of an asset or a company's…

Q: om and Jerry's has 3.4 million shares of common stock outstanding, 3.4 million shares of preferred…

A: The question is to calculate the weight of equity in total value of firm or total market value of…

Q: A corporation purchases 4,608 shares of its own $7 par common stock for $29 per share, recording it…

A: Whenever a corporation purchases some of its outstanding stock from its shareholders and does not…

Q: d Contractors has 4.5 million shares of common stock outstanding, 1 million shares of preferred…

A: The Weighted Average Cost of Capital (WACC) of a company is the total cost of capital, including…

Q: Filer Manufacturing has 6,382,006 shares of common stock outstanding. The current share price is…

A: Equity is the amount that would remain in the hands of a company's shareholders after all of its…

Q: Book Co. has 1.0 million shares of common equity with a par (book) value of $1.00, retained earnings…

A: Market value of the Equity is known as the current trading value of Equity. It provides information…

Q: The company with the common equity accounts shown here has declared a 15 percent stock dividend when…

A: First, we need to calculate the new number of shares outstanding by multiplying the current shares…

Q: FarCry Industries, a maker of telecommunications equipment, has 26 million shares of common stock…

A: Weighted average cost of capital is the average cost of capital raised from various sources such as…

Q: Team Sports has 4.9 million shares of common stock outstanding, 2.9 million shares of preferred…

A: The question is related to Cost of Capital. The weight will be calculated based on market value.…

Q: Alto and Tenor have 17,400 shares of stock outstanding at a market price of $27 per share. The firm…

A: Market value of equity = 17,400 x 27 = 469,800 Value of debt = 140,000 Total capital = 469,800 +…

Q: What are the dividends per share for preferred and common, respectively?

A: Dividend refers to that portion of the net income of the company which the company paid to its…

Q: WhackAmOle has 4 million shares of common stock outstanding, 3.0 million shares of preferred stock…

A: Debt is the obligation of the company. It is reported in the balance sheet of the company.

Q: Covid Contractors has 500,000 shares of common stock outstanding, 200,000 shares of preferred stock…

A:

Q: FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock…

A: WACC is a firm's cost of capital that is proportionally weighted by capital type. WACC is often used…

Q: What weight should you use for preferred stock

A: Weighted Average Cost of Capital is the cost a company pays for its employed capital. It is the…

Q: Simmons Mineral Operations, Inc., (SMO) currently has 490,000 shares of stock outstanding that sell…

A: A stock split is a strategy in which the stocks are split in various forms in order to change the…

Q: Mining Corporation has 6.1 million shares of common stock outstandin s of 3.4 percent preferred…

A: Weighted average cost of capital shall be the rate at which cash flows will be discounted.

Q: Veranica corp has common stock is currently selling on a stock exchange at P85 per share, and its…

A: Formulas: Par value of preferred stock=Preferred equity / No. of outstanding preferred shares  Par…

Q: WhackAmOle has 4 million shares of common stock outstanding, 3.0 million shares of preferred stock…

A: It is given that,Total number of common stock outstanding are 4,000,000 shares.Price of each common…

Q: WACC Weights BetterPie Industries has 3 million shares of common stock out- standing, 2 million…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock…

A: Weighted Average Cost of Capital (WACC) is the overall cost of capital from all the sources of…

Q: MOL Company has P200,000 available to pay dividends.  It has 12,000 10% preference shares (of which,…

A: "Since you have asked multiple sub part question we will solve the first  three question for you.…

Q: Polinezo Industries' balance sheet reflects an equity of $650 million, the stock price is $90 per…

A: Given, Equity in the balance sheet = $650 million  (Book value) Current Stock price (P0) = $90 per…

Q: Book Co. has 1.2 million shares of common equity with a par (book) value of $1.50, retained earnings…

A: Given:Book value has 1.2 million shares of common equity, book value= $1.50Retained earnings=$28.8…

Q: Book Co. has 1.5 million shares of common equity with a par (book) value of $1.30, retained earnings…

A: Debt and equity are the two main sources to raise the funds. Value of these securities fluctuates on…

Q: Jerald Toy Corporation has 7% cost of debt, 11% cost of equity, and 8% cost of preferred stock.…

A: The WACC is a monetary proportion that computes an organization's expense of financing and procuring…

Q: ena Corporation issued P5 million of preferred stock.  The flotation cost was 10 percent of gross…

A: Solution ‘ Given Issued preferred share 5 million Flotation cost 10% of gross proceed…

Q: The Creative Interiors Corporation has 40,000 shares of $12 par common stock and 12,000 shares of…

A: Preference shareholders have always preference in payment of dividend and capital from equity…

Q: Further From Center has 11,400 shares of common stock outstanding at a price of $48 per share. It…

A: Total value of capital refers to the aggregated value of all sources of finance. It includes equity…

Q: Hayes Corporation has $300 million of common equity, with 6 million shares of common stock…

A: Market value added is the amount a company adds to its shareholder's equity after issuing shares, it…

Q: The common stock of High Energy is selling for $58 a share. Currently, the firm has a total market…

A: Common stock = 58 Total market value = 1314900 Book value = 647600

Q: Kurt's Market has 16,000 shares of stock outstanding with a par value of $1 per share and a market…

A: Given information : Par value of stock = $1 Market value of stock = $17 Balance of common stock =…

Q: Mitchell Co. has $1.1 million of debt, $2 million of preferred stock, and $1.8 million of common…

A: A firm can finance its business operations through various sources of capital such as debt and…

Q: Flora Fountain has 26,000 shares of equity priced at $67 per share and the cost of equity is 13.60…

A: WACC = Ke * wte + Kpsc * wtpsc  + Kd (1-0.35) * wtd

Q: 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and…

A: Value of equity= no. of share* price per share   = 2 * 26     = 52 million Value of preferred…

Q: A firm has 12,000 shares of common stock outstanding with a market value of $41 per share. There are…

A: To Find: Weight of Preferred stock

Q: Charlotte's Crochet Shoppe has 17,300 shares of common stock outstanding at a price per share of $85…

A: Weighted average cost of capital (WACC)  is the rate of return which the company has to its capital…

Q: Gamma Industries has net income of $3,800,000, and it has1,490,000 shares of common stock…

A: Given information: Net income is $3,800,000 Number of shares outstanding are 1,490,000 Current stock…

Q: OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock…

A: Weights used to calculate the WACC are calculated as follows:   Weight for equity= E/(D+P+E) where…