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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.

- A. B. C.

Weight of Debt (Wd)

- A. B. C.

Weight of Preferred Stock (Wps)

- A. B. C.

Weight of Common Stock (Wc)

A.

68.11%

B.

11.76%

C.

20.12%

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