How will your estimate of WACC be affected by using weights calculated


Question 3.The forthcoming instruction is for Logo, Inc. a national consumer products company:Liabilities and EquityBook valuesTarget High StructureNotes Payable$2003%Long-term Debt1,00015%Preferred Stock5005%Common equity4.20077%Assume that you are an analyst preparing to estimate Logo's WACC and that the company'starget high edifice values overhead are unrecognized to you. Further, pretend that Logos consume ofdebt and consume of equity values are significantly unanalogous from each other. How obtain your estimateof WACC be artful by using weights estimated from the public size values rather than theunrecognized target high edifice in your calculations?

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