Carrie D\'s has 6.6 million shares of common stock outstanding, 3.6 million shar
ID: 2738024 • Letter: C
Question
Carrie D's has 6.6 million shares of common stock outstanding, 3.6 million shares of preferred stock outstanding, and 26.00 thousand bonds. If the common shares are selling for $29.70 per share, the preferred share are selling for $29.60 per share, and the bonds are selling for 108.84 percent of par, what would be the weight used for equity in the computation of Carrie D's WACC?
A 66.67%
B 59.24%
C 64.54%
D 33.33%
Carrie D's has 6.6 million shares of common stock outstanding, 3.6 million shares of preferred stock outstanding, and 26.00 thousand bonds. If the common shares are selling for $29.70 per share, the preferred share are selling for $29.60 per share, and the bonds are selling for 108.84 percent of par, what would be the weight used for equity in the computation of Carrie D's WACC?
Explanation / Answer
Type of Security Quantity(Million) Rate Value Weight Shares 6.6 29.7 196.02 0.641826 Preffered Stock 3.6 29.6 106.56 0.348908 Bond 0.026 108.84 2.83 0.009266 305.40984 Right Answer : Option C