Spacetech Is an All Equity Company with Common and Preferred

question 234

Multiple Choice

Spacetech is an all equity company with common and preferred shares. There are 250,000 common shares outstanding. Currently the common shares have a price of $50 per share and have consistently provided a $2 per share dividend. There are 50,000 5% preferred shares outstanding, with a stock price of $90 per share. Given this information, calculated the company's WACC.

• A) 8.60%
• B) 7.59%
• C) 6.48%
• D) 5.37%
• E) 4.26%

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Definitions:

Recycle Marketing

The practice of reusing or repurposing marketing content, campaigns, or materials to reduce waste and increase marketing efficiency.

Environmental Marketing

A marketing approach that emphasizes sustainability and the minimization of negative environmental impact through its products, services, and operations.

Recycling

The process of collecting, processing, and converting waste materials into new products to prevent waste of potentially useful materials, reduce consumption of fresh raw materials, and lower energy usage and pollution.

Cause Marketing

A partnership between a for-profit company and a nonprofit organization to mutually promote and benefit from social or charitable causes.