Problem

WACC Weights BetterPie Industries has 3 million shares of common stock outstanding, 2 mill...

WACC Weights BetterPie Industries has 3 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 10 thousand bonds.  If the common shares are selling for $47 per share, the preferred shares are selling for $24.50 per share, and the bonds are selling for 99 percent of par, what would be the weights used in the calculation of BetterPie’s WACC?

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Solutions For Problems in Chapter 11