What weight should you use for preferred stock

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Reference no: EM133017221

Question: farCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 20,000 bonds. Suppose the common shares sell for $29 per share, the preferred shares sell for $15.50 per share, and the bonds sell for 98 percent of par.

What weight should you use for preferred stock in the computation of FarCry's WACC? (Round your answer to 2 decimal places.)

Reference no: EM133017221

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