Market Value Weights

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FINHELP

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Joined
Mar 26, 2011
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I think I almost understand this - I am trying to fill out the following information, but I am not sure how to calculate the component cost. Once I get the component cost percentage my plan is to multiply it by the weight to get the weighted cost of each (debt, preferred stock and common equity) then add them up to get a total weighted average cost of capital using market value weights.

Capital Market Value Weight x Component Cost = Weighted Cost
Debt 90,000 .30
Preferred Stock 60,000 .20
Common Equity 150,000 .50
Total 300,000 1.00
 
oops I tried to type it as a table - - the weight is next to each market value
Debt 90,000, weight .30
Preferrred Stock 60,000, weight .20
Common equity 150,000, weight .50
Total 300,000, weight 1.00
 
Sorry - I figured it out. There is a formula for each and the missing information was listed on a different page. I was thinking that I didn't have enough info. Thanks for reading and trying to help me out. I have the component cost for each so then I multiplied each by the weight to get a percentage. Then I added up the percentages to get my total. Thanks - sometimes as soon as I type out the quesion I need help with - then it magically comes to me.
 
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