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Other Fields Homework Help Business Topic started by: stranahan on Nov 17, 2016



Title: The following market information was gathered for the ACME corporation. The common stock is selling ...
Post by: stranahan on Nov 17, 2016
The following market information was gathered for the ACME corporation. The common stock is selling for $40.00 per share and there are 100,000 shares outstanding. Retained earnings equal $400,000, preferred stock has 1,000 shares outstanding selling at $120.00 per share, and 500 outstanding long-term bonds are selling for $1,035.00 each. For purposes of estimating the firm's WACC, what are the market value weights of long-term debt, preferred stock, and equity?
A) D/V = 10.27%, PS/V = 2.38%, and E/V = 87.34%
B) D/V = 10.78%, PS/V = 3.08%, and E/V = 86.14%
C) D/V = 11.16%, PS/V = 2.59%, and E/V = 86.25%
D) D/V = 33.33%, PS/V = 33.33%, and E/V = 33.33%


Title: Re: The following market information was gathered for the ACME corporation. The common stock is ...
Post by: torchunicycle on Nov 17, 2016
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Title: Re: The following market information was gathered for the ACME corporation. The common stock is selling ...
Post by: stranahan on Jan 6, 2017
Thanks ^-^