Answer:
-1.167%
Explanation:
The current value of the stock is given by applying all of the realized returns to the initial purchase price. Let 'A' be the initial price, the price at the end of the year is:
At the end of the year, the stock had a price of 0.9883 times the initial price, the annual realizes return was:
Annual realized return was -1.167%.
Answer:
87.18%
Explanation:
Equity = Common stock + Preferred stock.
We know, WACC =
Equity can further be broken into two pieces = Common + Preferred.
In this case, as we do not have any rate of return. We will add all the equity and debt. Then divide the total equity by the total capital structure.
Total capital structure = Common stock + Preferred stock + debt
Total capital structure = 2,000,000 x $26 + 1,000,000 x $14 + 10,000 x 0.97 x $1,000
Total capital structure = $(52,000,000 + 14,000,000 + 9,700,000)
Total capital structure = $75,700,000
Total equity = 2,000,000 x $26 + 1,000,000 x $14 = $66,000,000
the weight would be used for equity in the computation of FarCry’s WACC
=
=
= 87.18%