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5 pts The Rainforest Inc. uses a mbeture of common stock, preferred stock, and debt to finance its operations. In its capital structure, the market

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5 pts The Rainforest Inc. uses a mbeture of common stock, preferred stock, and debt to finance its operations. In its capital structure, the market value of the company's equity is three times greater than the market value of its debt. The company has a weighted average cost of capital of 11.3 percent. The company's cost of equity is 15 percent. Its cost of preferred is 9 percent, and its pre- tax cost of debt is 6 percent. The corporate tax rate is 21 percent. What is the weight of preferred stock? 26.67 percent 12.98 percent 21.33 percent 18.63 percent 33.04 percent

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