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.