1. Microsoft and Intel are examples of growth stocks, I have no reason to doubt that; however, select one of those and provide a bit more data that would illustrate the important ratios and address the indicators of sustainability
2. FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds. Suppose the common shares are selling for $25 per share, the preferred shares are selling for $13.50 per share, and the bonds are selling for 97 percent of par.
What would be the weight used for equity in the computation of FarCry’s WACC?