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assignment.docx|
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Determine Weights for the Weighted Average Cost of Capitol |
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Calculate Book Valu vs Mkt Valu weights: |
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BS or Book Valu |
Wt |
Shares |
Mkt Price |
Sh x Price |
Mkt Value |
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Wt |
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Debt |
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$ 150,000,000 |
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150000 |
$ 1,075 |
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$ 161,250,000 |
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Preferred |
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$ 45,000,000 |
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1500000 |
$ 40 |
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Common Stk |
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$ 180,000,000 |
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4500000 |
$ 45.57 |
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Total |
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$ 375,000,000 |
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1 |
Calculate the Wts of Debt, Preferred, and Common Stk for Book Value & Market Value (20 pts) |
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2 |
Which set of weights will you recommend to use (Book or Market Value) and why? (10 pts) |
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3 |
Present your recommendation to management in a power point (20 Pts) |
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