If the common shares are selling for 27 per share the


FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10 thousand bonds. If the common shares are selling for $27 per share, the preferred share are selling for $14.50 per share, and the bonds are selling for 98 percent of par, what weight should you use for equity in the computation of FarCrys WACC?

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Finance Basics: If the common shares are selling for 27 per share the
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