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A firm has 600,000 common shares outstanding which are selling for a price of $36 per share. The firm has 32,000 preferred shares selling for
A firm has 600,000 common shares outstanding which are selling for a price of $36 per share. The firm has 32,000 preferred shares selling for $95 per share and 13,500 outstanding $1000 par value bonds which are selling for 96% of par. What are the weights to use for the firm's WACC?
a) 63% equity, 13%preferred, 24% debt
B) 93% equity, 5%preferred, 2% debt
C) 40% equity, 8%preferred, 52% debt
D) 57% equity, 8%preferred, 34% debt
E) 46% equity, 13%preferred, 41% debt
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