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Question 2 Corporation A has debt with market value of $208991336, common equity with a...

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Finance

Question 2

Corporation A has debt with market value of $208991336, common equity with a book value of $181586005, and preferred stock worth $31129779 outstanding. Its common equity trades at $54.63 per share, and the firm has 7105638 shares outstanding. What weight for Common Equity should Corporation A use in its WACC?

Question 3

Corporation A has debt with market value of $88307039, common equity with a book value of $112267334, and preferred stock worth $21562325 outstanding. Its common equity trades at $84.39 per share, and the firm has 6514157 shares outstanding. What weight for Preferred Equity should Corporation A use in its WACC?

Question 4

Corporation A has the following balance sheet and an equity market-to-book ratio of 1.82. Assuming the market value of debt equals its book value, what weight for Debt should Corporation A use in its WACC?

AssetsLiabilities10000Debt4000 Equity6000

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