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Given below are information regarding the capital structure of LaFarge Inc. What should be the ideal weights that you should use to calculate the weighted

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Given below are information regarding the capital structure of LaFarge Inc. What should be the ideal weights that you should use to calculate the weighted average cost of capital of LaFarge? Book value Market value Target capital structure Debt $50 million $80 million $30 million Preferred Stock $20 million $30 million $30 million Equity $40 million $70 million $50 million wa = 27.27% for debt, Wp = 16.67% for preferred stock and wg = 38.89% for equity. Wa = 45.46% for debt, Wp = 18.18% for preferred stock and Ws = 36.36% for equity. wa = 44,44% for debt, wi - 16.67% for preferred stock and ws = 38.89% for equity. W = 27.27% for debt, Wp = 27.27% for preferred stock and ws - 45.46% for equity

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