Transcribed Image Text
Fairyland Inc. has 4 million shares of common stock outstanding,1 million shares of preferred stock outstanding, and 200 thousandbonds. The common shares are selling for $25 per share, thepreferred share are selling for $10 per share, and the bonds areselling for 95 percent of their $1,000 par. (See P10-3 for formulato calculate weights).A. What would be the weight used for equity in the computationof FarCry’s WACC?B. What weight should you use for debt in the computation ofFairyland ‘s WACC?C. What weight should you use for preferred stock in thecomputation of Fairyland ‘s WACC?
Other questions asked by students
Basic Math
Advance Math
Accounting
Basic Math
Accounting
Accounting