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Fine Dining has 25,000 shares of common stock outstanding at a price of $50 a share. It also has 2,000 shares of preferred stock outstanding
Fine Dining has 25,000 shares of common stock outstanding at a price of $50 a share. It also has 2,000 shares of preferred stock outstanding at a price of $71 a share. The firm has 500 bonds that pays 7 percent coupon semi-annually, with 12-years maturity. The bonds are currently quoted at 110.5 percent. What is the capital structure weight of the firm's common stock if the tax rate is 34 percent? Answer Options: 62.49 percent
28.41 percent
64.28 percent
71.16 percent
48.84 percent
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