Calculate the proportions of debt and equity

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Reference no: EM13197913

1) Given the following data for Vinyard Corporation:

811_Calculate the proportions of debt.png

Calculate the proportions of debt (D/V) and equity (E/V) for the firm that you would use for estimating the weighted average cost of capital (WACC)

2)Explain in detail

A firm has issued $5 par value preferred stock that pays a $0.80 annual dividend. The stock currently sells for $9.50. In calculating a WACC, what would be the value of the firm's preferred stock?

Reference no: EM13197913

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