What would be the weight used for equity in the computation

Assignment Help Finance Basics
Reference no: EM131300983

Sports Corp WACC

Sports Corp has 10.2 million shares of common stock outstanding, 5.2 million shares of preferred stock outstanding, and 1.2 million bonds. If the common shares are selling for $25.2 per share, the preferred share are selling for $12.7 per share, and the bonds are selling for 96.98 percent of par, what would be the weight used for equity in the computation of Sports's WACC?

Reference no: EM131300983

Questions Cloud

Develop properly formatted income statement for given months : Using the sales, cost of goods sold (assume at 54% of sales), and selling expense information, develop a properly formatted income statement for these months.
Provide two to three peer-reviewed sources to support : Analyze how the theories of psychopathology could explain the behavior of Jeffrey Dahmer.Consider whether psychopathology could provide any aid to persons such as Jeffrey Dahmer.Provide two to three peer-reviewed sources to support your claims.
How natural pollutants of radon-biological contaminants : Explain how the natural pollutants of radon and biological contaminants could potentially be found in residence dwellings or business buildings in rural portions of the United States, as well as under-developed third-world countries.
Explain the effect of a fall in the oil price on the market : Explain the effect of a fall in the oil price on the market for ethanol. If the price of oil remains low for some years, what will be the long-run effects on the market for ethanol and the number of ethanol producers?
What would be the weight used for equity in the computation : If the common shares are selling for $25.2 per share, the preferred share are selling for $12.7 per share, and the bonds are selling for 96.98 percent of par, what would be the weight used for equity in computation of Sports's WACC?
Determining the avatar-mediated communications : Avatars are virtual characters that can be used as representatives of a company that is using the Internet as a distribution channel. For instance, avatars can be used as shopping assistants, website guides, or as identification figures. A manager..
Analyze how learning and theory apply in real-life situation : analyze how learning and theory apply in real-life situations.Do you agree with the behaviorist view that learning only occurs if there is an outward manifestation? Why, or why not?What are the potential advantages of defining learning as a change i..
What are your estimates of value from cash flow analysis : What are your estimates of value from cash flow analysis? From comparables? Which, if any, of these valuations do you think are reliable? How profitable is this company, and what are the key drivers of this profitability?
Available for building leadership skills and competencies : Many professional development courses are available for building leadership skills and competencies. Courses differ substantially, but most presuppose that leadership can be taught or developed within a person.

Reviews

Write a Review

Finance Basics Questions & Answers

  Old personal loan officer at second national bank

1.Jacqueline Strauss, a 25-year-old personal loan officer at Second National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $3,000 per year for her retirement fund and assumes that she'll ..

  What does the bond currently sell for

A particular bond has 8 years to maturity. It has a face value of $1,000. It has a YTM of 7% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for?

  Which of following statements about exchange rates is true

Which of the following statements about exchange rates is true?

  Multifactor productivity for operation

Calculate the multifactor productivity for this operation in fees generated per dollar of input.

  Compute required rate of return

Kish's beta coefficient can be discovered as a weighted average of its stocks betas. The risk free rate is 6 percent, and you believe the following probability distribution future market returns is realistic:

  What is kinston pre-tax cost of debt

1. What is kinston's pre-tax cost of debt? 2. What is kinston's cost of preferred stock? 3. What is kinston's cost of equity 4. What is kinston's capital structure weight of the preferred stock?

  How much faster could you pay the loan off by making plan

All is not lost: You just received an offer in the mail to transfer your $12,000 balance from your current credit card, which charges an annual rate of 19.8 percent, to a new credit card charging a rate of 10.4 percent.

  Say that you purchase a house for 150000 by getting a

say that you purchase a house for 150000 by getting a mortgage for 135000 and paying a 15000 down payment. assume you

  Find the future value at the end of the deposit period

find the future value at the end of the deposit period, assuming that interest is compounded continuously at the given nominal annualrate.

  Factory to minimize production cost

How many items per month should be produced at this factory to minimize production cost?

  Would multinational corporations still exist

If capital markets were perfect, that is capital could move freely across national borders, would multinational corporations still exist? why? or why not?

  What is the npv of the ticket scalping venture

Also has 6% interest rate. What's the NPV of the ticket scalping venture?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd