Market value of bonds = 1,000 * 970 = 970,000
Market value of preferred stock = 9,600 * 80 = 768,000
Market value of common stock = 42,000 * 75 = 3,150,000
total market value = 970,000 + 768,000 + 3,150,000 = 4,888,000
Weight of preferred stock = ( 768,000 / 4,888,000) * 100
Weight of preferred stock = 0.1571 or 15.71%
The Auto Group has 1,000 bonds outstanding that are selling for $970 each. The company also...
a compamny has 2,500 bonds outstanding that are selling for K650 each. The company also has 5,000 shares of preferred stock at a market price of K20 each. The common stock is priced at K15 a share and there are 26,000 shares outstanding. What is the weight of the common stock as it relates to the firms weighted average cost of capital
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The Rolling Dough Dessert Company currently has debt which consists of 8 percent coupon bonds (semi-annual coupon payments) which have a maturity of 14 years and are currently priced at $1,154 per bond. There are 12,000 of these bonds outstanding. The firm also has an issue of 1 million preferred shares outstanding with a market price of $14.00 per share. The preferred shares pay an annual dividend of $0.85. RDDC also has 1.5 million shares of common stock outstanding with...
The Rolling Dough Dessert Company currently has debt which consists of 8 percent coupon bonds (semi-annual coupon payments) which have a maturity of 14 years and are currently priced at $1,154 per bond. There are 12,000 of these bonds outstanding. The firm also has an issue of 1 million preferred shares outstanding with a market price of $14.00 per share. The preferred shares pay an annual dividend of $0.85. RDDC also has 1.5 million shares of common stock outstanding with...
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Florida Groves has 380 bonds outstanding that are selling at 97.4 percent of face value. The firm also has 2,600 shares of preferred stock valued at $61 a share and 37,500 shares of common stock valued at $19 a share. What weight should be assigned to the common stock when computing the weighted average cost of capital? =57.40% -Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.
A firm has the following capital structure. Assume the company's tax rate is 25% Debt: the firm has 5,000 6% coupon bonds outstanding $1000 par value, 11 years to maturity selling for 103 percent of par: the bonds make semiannual payments. Common Stock: The firm has 375000 shares outstanding, selling for $65 per share; the beta is 1.08 Preferred Stock: The firm has 15,000 shares of 5% preferred stock outstanding, currently selling for $75 per share. There is currently a...