zibnmustafah
30.07.2021 •
Business
Sports Corp has 11.7 million shares of common stock outstanding, 6.7 million shares of preferred stock outstanding, and 2.7 million bonds. If the common shares are selling for $26.7 per share, the preferred share are selling for $14.2 per share, and the bonds are selling for 96.83 percent of par, what would be the weight used for common stock in the computation of Sports's WACC
Solved
Show answers
More tips
- F Food and Cooking How to Find Your Zip Code?...
- W Work and Career Can Skill Alone Make You a Professional?...
- C Computers and Internet How to Top Up Your Skype Account Without Losing Money?...
- P Philosophy Unidentified Flying Object - What is the Nature of this Phenomenon?...
- F Family and Home Protect Your Home or Apartment from Pesky Ants...
- O Other What is a Disk Emulsifier and How Does it Work?...
- F Family and Home What does a newborn need?...
- F Family and Home Choosing the Right Car Seat for Your Child: Tips and Recommendations...
- F Food and Cooking How to Get Reconfirmation of Registration?...
Answers on questions: Business
- B Business Yo Katie apparently your bf was d9ting us at the same time so since I am pansexual do you wanna d9te to p1ss him off...
- B Business Dée Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $20 per share. She borrows $2,500 from her broker to help pay for the purchase. The interest...
- B Business What higher profit margin in insourcing...
- B Business An investment with more liquidity would be ideal for someone who a. knows they will need cash in the near future b. know they will need cash years from now c. wants to have...
- M Mathematics At algorithms pizza they have the exponential pizza, wich is a 24 inch cheese pizza thst cost $17.50. each topping cost $2.35. cif connor ordered the exponential pizza and...
- M Mathematics 1. n^6/n^2 a. 1/n^4 b. n^4 c. n^8 d. n12...
- C Chemistry What does osmosis depend on? a. the identity of the solute and solvent b. how much solvent is present in the solution c. the number of particles present in the solution d....
- C Computers and Technology Computers are often referred to as new machines real machines smart machines mechanical machines...
- H Health Which cell has the better survival plan, animal or plant cell? support your answer with facts...
- C Computers and Technology Does the sticker list an automatic or manual transmission? a. automatic b. manual c. it doesn t list the transmission....
Ответ:
10.34%
Explanation:
First calculate the value of the company's total capital:
= Common stock + Preferred stock + Debt
= (11,700,000 * 26.70) + (6,700,000 * 14.20) + (2,700,000 * 96.83/100 * 1,000 par value)
= $3,021,940,000
The weight to be used for common stock is:
= Common stock value / Total capital value
= (11,700,000 * 26.70) / 3,021,940,000
= 312,390,000 / 3,021,940,000
= 10.34%
Ответ: