FarCry Industries, a Maker of Telecommunications Equipment, Has 6 Million

question 67

Multiple Choice

FarCry Industries, a maker of telecommunications equipment, has 6 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10 thousand bonds. If the common shares are selling for $27 per share, the preferred shares are selling for $15 per share, and the bonds are selling for 119% of par ($1000) , what weight should you use for debt in the computation of FarCry's WACC?

• A) 4.93%
• B) 5.07%
• C) 5.81%
• D) 6.30%

---

Definitions:

Space Of Projection

Space of projection refers to a conceptual or physical area where ideas, feelings, or visual representations are projected or made manifest.

Memory Links

Connections formed in the brain between different pieces of stored information, facilitating recall and understanding.

Spatial Cognition

The knowledge and processes used to represent and navigate in and through space.

Space Of Navigation

Space of navigation refers to physical or virtual environments in which individuals or objects move and orient themselves.