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Bank of America has 1,000 bonds outstanding that are currently selling for $975 each. They have 10,000 shares of preferred stock outstanding with a current
Bank of America has 1,000 bonds outstanding that are currently selling for $975 each. They have 10,000 shares of preferred stock outstanding with a current market price of $57. They also have 100,000 shares of common stock outstanding with a current market price of $33. Calculate wd, wps, and wc (the weights for each type of capital in their capital structure). Match the calculated weight with the correct type of capital.
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