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A firm has $25,000,000 of preferred stock and $75,000,000 of debt. The firm also has 3,000,000...

A firm has $25,000,000 of preferred stock and $75,000,000 of debt. The firm also has 3,000,000 shares of common stock outstanding, and the current stock price is $50 per share. What is the weight of common equity (wc) when calculate WACC of this company?

  • A. 60%
  • B. 40%
  • C. 30%
  • D. 50%
  • E. 10%
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Answer #1

Ansi is A. 60%

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