JackITs Has 5 Million Shares of Common Stock Outstanding, 1

question 117

Multiple Choice

JackITs has 5 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 20 thousand bonds. If the common shares are selling for $28 per share, the preferred shares are selling for $13.50 per share, and the bonds are selling for 98 percent of par, what would be the weight used for common stock in the computation of JackITs' WACC?

• A) 33.33 percent
• B) 80.88 percent
• C) 83.08 percent
• D) 91.19 percent

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Definitions:

Managerial Innovation

The adoption of novel ways to organize and manage corporate resources, often leading to more effective administration and operations.

Managerial Innovations

New or improved managerial strategies, methods, or practices that aim to enhance organizational performance.

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The act of producing novel and useful ideas or solutions that diverge from the norms or expectations of a group or organization.

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The comprehension and proficiency in the use of technology and technical processes.