Team Sports has 5.2 million shares of common stock outstanding, 3.2 million shares of preferred stock outstanding, and 32 thousand bonds. If the common shares are selling for $4.20 per share, the preferred share are selling for $16.2 per share, and the bonds are selling for 98.88 percent of par, what would be the weight used for common stock in the computation of Team's WACC? Multiple Choice A. 26.16% B. 61.67% C. 20.74% D. 26.16% E. 33.33%
Team Sports has 5.2 million shares of common stock outstanding, 3.2 million shares of preferred stock outstanding, and 32 thousand bonds. If the common shares are selling for $4.20 per share, the preferred share are selling for $16.2 per share, and the bonds are selling for 98.88 percent of par, what would be the weight used for common stock in the computation of Team's WACC? Multiple Choice A. 26.16% B. 61.67% C. 20.74% D. 26.16% E. 33.33%
Chapter9: The Cost Of Capital
Section: Chapter Questions
Problem 7P
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100%
Team Sports has 5.2 million shares of common stock outstanding, 3.2 million
Multiple Choice
A. 26.16%
B. 61.67%
C. 20.74%
D. 26.16%
E. 33.33%
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