MV Corporation has debt with market value of $101 ?million, common equity with a book value...

80.2K

Verified Solution

Question

Finance

MV Corporation has debt with market value of $101 ?million,common equity with a book value of $95 million, and preferred stockworth $22 million outstanding. Its common equity trades at $50 per?share, and the firm has 5.8 million shares outstanding. Whatweights should MV Corporation use in its? WACC?

The debt weight for the WACC calculation is _____. ?(Round totwo decimal? places.)

The preferred stock weight for the WACC calculation is_______?(Round to two decimal? places.)

The common equity weight for the WACC calculation is_______?(Round to two decimal? places.)

Answer & Explanation Solved by verified expert
4.0 Ratings (480 Votes)
Debt Market Value of Debt 101000000 Preferred Stock Market Value of Preferred Stock 22000000 Common Equity Number of shares outstanding 5800000 Current Price 50    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

MV Corporation has debt with market value of $101 ?million,common equity with a book value of $95 million, and preferred stockworth $22 million outstanding. Its common equity trades at $50 per?share, and the firm has 5.8 million shares outstanding. Whatweights should MV Corporation use in its? WACC?The debt weight for the WACC calculation is _____. ?(Round totwo decimal? places.)The preferred stock weight for the WACC calculation is_______?(Round to two decimal? places.)The common equity weight for the WACC calculation is_______?(Round to two decimal? places.)

Other questions asked by students