Question
In: Finance
MV Corporation has debt with market value of $ 99 million, common equity with a book...
MV Corporation has debt with market value of $ 99 million, common equity with a book value of $ 104 million, and preferred stock worth $ 18 million outstanding. Its common equity trades at $ 55 per share, and the firm has 6.3 million shares outstanding. What weights should MV Corporation use in its WACC?
The debt weight for the WACC calculation is %. (Round to two decimal places.)
The preferred stock weight for the WACC calculation is %. (Round to two decimal places.)
The common equity weight for the WACC calculation is %. (Round to two decimal places.)
Solutions
Expert Solution
Note-
Weight of debt = Market value of debt /Total market value of capital
Weight of equity = Market value of equity /Total market value of capital
Weight of preferred stock = Market value of Preferred stock / Total market value of capital
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jeff jeffy answered 1 year agoRelated Solutions
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