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tensa zangetsu [6.8K]
3 years ago
7

Sports Corp has 11.7 million shares of common stock outstanding, 6.7 million shares of preferred stock outstanding, and 2.7 mill

ion bonds. If the common shares are selling for $26.7 per share, the preferred share are selling for $14.2 per share, and the bonds are selling for 96.83 percent of par, what would be the weight used for common stock in the computation of Sports's WACC
Business
1 answer:
katrin2010 [14]3 years ago
7 0

Answer: 10.34%

Explanation:

First calculate the value of the company's total capital:

= Common stock + Preferred stock + Debt

= (11,700,000 * 26.70) + (6,700,000 * 14.20) + (2,700,000 * 96.83/100 * 1,000 par value)

= $3,021,940,000

The weight to be used for common stock is:

= Common stock value / Total capital value

= (11,700,000 * 26.70) / 3,021,940,000

= 312,390,000 / 3,021,940,000

= 10.34%

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<u>Explanation:</u>

All in all, when the rate of interest is rising, it normally makes shared assets, and different ventures, less appealing. This is on the grounds that the expense of acquiring increments with an expansion in loan fee and people and organizations has less cash to place in their portfolio.

As a result of this increase in the cost of borrowing, the quantity supplied of the mutual funds increases in the market, thus increasing the supply in the financial market.

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3 years ago
Vijay Inc. purchased a 3-acre tract of land for a building site for $420,000. On the land was a building with an appraised value
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Answer:

$433,900

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3 years ago
the value of the marginal product of any input is equal to the marginal product of that input multiplied by the:_____.
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<h3>How to find the marginal product?</h3>

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Value of Marginal Product = Marginal physical product × Average revenue price of the product.

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Answer:

C) exploratory research

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There are simply too many options that can define if a product is successful or not. This is why Adeeb's team prepared a survey that include questions that were not that specific. Why do you like or dislike the pastry? If the pastry's price is X would you buy it, if its price is Y?

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3 years ago
Read 2 more answers
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