Solar Shades has 6.0 million shares of common stock outstanding, 5.0 million shares of preferred stock outstanding, and 20 thousand bonds. If the common shares are selling for $29.10 per share, the preferred share are selling for $31.00 per share, and the bonds are selling for 104.90 percent of par, what would be the weight used for common stock in the computation of Solar Shade’s WACC?
(6,000,000 × 29.10)/(6,000,000×29.10 + 5,000,000×31.00 + 20,000×1.0490×1,000) = 174.6M/350.6M = 49.80%
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now