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Indicate the capital structure weightings that a firm should use in calculating its WACC based on the following: CAPITAL STRUCTURE COMPONENTS Debt Preferred Shares Equity

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Indicate the capital structure weightings that a firm should use in calculating its WACC based on the following: CAPITAL STRUCTURE COMPONENTS Debt Preferred Shares Equity BOOK VALUE $200,000 $300,000 $500,000 $1,000,000 MARKET VALUE $180,000 $290,000 $1,530,000 $2,000,000 a) Debt 30%; Preferred Shares 20%; Equity 50% b) Debt 9%; Preferred Shares 14.50%; Equity 76.5% c) Debt 33%; Preferred Shares 33%; Equity 33% d) Debt 20%; Preferred Shares 30%; Equity 50% e) None of these answers

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