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Here I Sit Sofas has 6,900 shares of common stock outstanding at a price of $92 per share. There are 520 bonds that mature in
Here I Sit Sofas has 6,900 shares of common stock outstanding at a price of $92 per share. There are 520 bonds that mature in 28 years with a coupon rate of 6.6 percent paid semiannually. The bonds have a par value of $2,000 each and sell at 107.5 percent of par. The company also has 5,800 shares of preferred stock outstanding at a price of $45 per share. What is the capital structure weight of the debt?
A. .6848
B. .5552
C. .6005
D. .3152
E. .6319
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