1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
blsea [12.9K]
3 years ago
10

MV Corporation has debt with market value of ​million, common equity with a book value of ​million, and preferred stock worth mi

llion outstanding. Its common equity trades at per​ share, and the firm has million shares outstanding. What weights should MV Corporation use in its​ WACC?
Business
1 answer:
kirza4 [7]3 years ago
6 0

Answer:

The Weighted Average cost of capital measures the cost to the company of its current capital structure by using the weights of the various capital measures. WACC usually uses market values so;

Total amount = Debt + Preferred stock + common equity

= 100 million + 20 million + ( 50 * 6 million)

= $420 million

<u>Proportions.</u>

Debt

= 100/420

= 24%

Preferred Stock<u> </u>

= 20/420

= 5%

Common Equity

= 300/420

= 71%

You might be interested in
Which kind of listing gives one broker the right to sell, but allows the owner to sell the property and not owe a commission to
Veseljchak [2.6K]

Answer:

Exclusive Agency Listing

Explanation:

For this type of listing, the broker represents the real state seller. However, the seller <u>has the right</u> to sell the property by themselves. If the property were to be sold by <em>other means</em> different that the broker's, the agency will not receive a commision from the seller.

5 0
3 years ago
All of the following actions lead to the payment of a credit card fee EXCEPT...
alexandr402 [8]

I need the picture so I can see it

7 0
3 years ago
Read 2 more answers
What decisions does the business cycle help businesses make? check all that apply
Tasya [4]
<span>the answers is 2,4,5,6</span>
7 0
3 years ago
1. Beginning inventory plus net purchases equals
Morgarella [4.7K]

Answer:

D. cost of goods available for sale.

Explanation:

The cost of goods available for sale, also known as the total inventory, represents the total amount of finished products that a company had in its store for selling. The calculation of costs of goods available for sale involves adding beginning stock to the net purchases.

Beginning inventory is the ending balance in the previous financial period. It is the finished product balance brought forward of the prior period. Net purchases are the purchases adjusted for discounts and purchase returns. The costs of goods available for sale minus ending inventory will equal to the costs of goods sold.

5 0
3 years ago
Imagine that before black diamond initiated its greenfield venture in zhouhai, china, peter and wim asked for your advice. what
Nadya [2.5K]
<span>A green field investment or venture is a foreign direct investment known as FDI. If a company decides to go the FDI route, they are building their operations within a foreign country from start to finish. They will often build many distribution warehouses, offices and living areas for their workers that go to the foreign country to work or those within the foreign country working for the parent company. </span>
7 0
3 years ago
Read 2 more answers
Other questions:
  • One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000. Today,
    15·1 answer
  • What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?A. Small au
    5·1 answer
  • What are some of the drawbacks from 2007 to 2009 you have encountered in your research for this discussion, why companies showed
    8·1 answer
  • Which of the following movements started in Great Britain in the early 1980s when then Prime Minister Margaret Thatcher started
    6·1 answer
  • Merchandise with a sales price of $9,300 is sold on account with terms 2/10, n/30. The journal entry to record the sale would in
    7·2 answers
  • Larry Bar opened a frame shop and completed these transactions: Larry started the shop by investing $41,100 cash and equipment v
    11·1 answer
  • Francis is a busy manager. She needs to quickly let her employees know about shift schedule changes for Wednesday afternoon, so
    5·1 answer
  • All of the following are tactics that stores use to encourage you to make impulse choices EXCEPT ..
    5·2 answers
  • 3. A U.S. MNC needs to raise capital of $100 million by issuing bonds. The firm can either raise US$ at 5% interest rate or issu
    10·1 answer
  • Select the correct answer.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!