Problemteam sports has 43 million shares of common stock, Ask an Expert

Finance

Problem:

Team Sports has 4.3 million shares of common stock outstanding, 2.3 million shares of preferred stock outstanding, and 23 thousand bonds.

Required:

If the common shares are selling for $3.30 per share, the preferred share are selling for $15.3 per share, and the bonds are selling for 98.97 percent of par, what would be the weight used for equity in the computation of Team's WACC?

33.33%
64.93%
19.67%
24.49%

Note: Please provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162786

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