A firm has 60,000 shares of common stock outstanding at a price of $23 a share. The firm also has 700 bonds outstanding with 9 percent coupon payment, 10-year to maturity and $1,000 face value. The bonds are currently quoted at $980 and pay interest semiannually. It also has 5,000 shares of preferred stock outstanding at a price of $38 a share. What is the capital structure weight of the firm's debt? 1) 23.17 percent 2) 25.68 percent 3) 27.94 percent 4) 30.41 percent Listen Kennesaw Corp. produces outdoors equipment including tents. Kennesaw Corp. previous sales for tents were 98,000 and for climbing equipment were 146,000. In the upcoming year, the CEO has decided to produce specialty sleeping bags also. As a consequence of this decision, the following year sales projections for tents are $101,000, for climbing equipment are $158,000, and for sleeping bags are $32,000. How much of next year's sales are derived from the side effects of adding the new product to its sales offerings? 1) -$2,000 2) $15,000 3) $17,000 4) $35,000 A firm has an 8% preferred stock outstanding with a face value of $50. If the preferred stock is currently selling at $44, what is the cost of the preferred stock? 1) 9.45% 2) 9.09% 3) 10.87% 4) 13.5%