Sports Corp has 11.7 million shares of common stock outstanding, 6.7 million shares of preferred stock outstanding, and 2.7 million bonds. If the common shares are selling for $26.7 per share, the preferred share are selling for $14.2 per share, and the bonds are selling for 96.83 percent of par, what would be the weight used for equity in the computation of Sports's WACC? a. 55.45% b. 10.34% c. 33.33 d. 11.53%

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Sports Corp has 11

Finance Oct 31, 2020

Sports Corp has 11.7 million shares of common stock outstanding, 6.7 million shares of preferred stock outstanding, and 2.7 million bonds. If the common shares are selling for $26.7 per share, the preferred share are selling for $14.2 per share, and the bonds are selling for 96.83 percent of par, what would be the weight used for equity in the computation of Sports's WACC?

a. 55.45% b. 10.34% c. 33.33 d. 11.53%

Expert Solution

Hence, the correct option is b). 10.34%

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