FarCry Industries, a Maker of Telecommunications Equipment, Has 26 Million

question 37

Multiple Choice

FarCry Industries, a maker of telecommunications equipment, has 26 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10 thousand bonds. If the common shares sell for $15 per share, the preferred shares sell for $114.50 per share, and the bonds sell for 101% of par ($1000) , what weight should you use for preferred stock in the computation of FarCry's WACC?

• A) 28.52%
• B) 27.51%
• C) 26.24%
• D) 22.25%

Familiarize with the concept of Weber's law and just noticeable difference (jnd).

Understand how subliminal stimuli can influence attitudes and perceptions.

Be knowledgeable about the process of transduction in sensory systems.

Recognize the structure and function of the eye, including the role of cones, rods, and other components in vision.

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Definitions:

Earnings Per Share

The portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Stock Split

An action by a company to divide its existing shares into multiple new shares to boost the liquidity of the shares.

EPS Rise

An increase in a company's earnings per share (EPS), indicating that it is generating greater profits relative to the number of shares outstanding.

EPS Fall

A decrease in Earnings Per Share, indicating that a company is generating less profit for each share of its stock.