Using the information in the two figures below calculate the WACC for Ciena Capital Structure (Millions of USD) Market Cap ST Debt LT Debt Pref. Eqty Total 5,940.9 78.7% 28.4 0.4% 1,576.7 20.9% 0.0 0.0% 7,545.9 100.0% Ciena Corp Cost of Capital - Current Market Value 3) Equity 4) Debt Cost (A-T) 5) Preferred Equity WACC Weight Cost 78.7% 11.5% 21.3% 5.1% 0.0% 0.0%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter12: Capital Structure
Section: Chapter Questions
Problem 1PROB
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options:

 

A)11.5%

 

B)10.1%

 

C)5.1%

 

D)7.35%

Using the information in the two figures below calculate the WACC for Cienal
Capital Structure (Millions of USD)
Market Cap
ST Debt
LT Debt
Pref. Eqty
Total
5,940.9 78.7%
28.4
0.4%
1,576.7
20.9%
0.0
0.0%
7,545.9 100.0%
Ciena Corp
Cost of Capital - Current Market Value
3) Equity
4) Debt Cost (A-T)
5) Preferred Equity
WACC
Cost
11.5%
Weight
78.7%
21.3%
5.1%
0.0% 0.0%
Transcribed Image Text:Using the information in the two figures below calculate the WACC for Cienal Capital Structure (Millions of USD) Market Cap ST Debt LT Debt Pref. Eqty Total 5,940.9 78.7% 28.4 0.4% 1,576.7 20.9% 0.0 0.0% 7,545.9 100.0% Ciena Corp Cost of Capital - Current Market Value 3) Equity 4) Debt Cost (A-T) 5) Preferred Equity WACC Cost 11.5% Weight 78.7% 21.3% 5.1% 0.0% 0.0%
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