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Kim's Bridal Shoppe has 10,000 shares of common stock outstanding at a price of $34 per share. It also has 200 shares of preferred stock

Kim's Bridal Shoppe has 10,000 shares of common stock outstanding at a price of $34 per share. It also has 200 shares of preferred stock outstanding at a price of $86 per share. There are 500 bonds outstanding that have a coupon rate of 7.5 percent paid semiannually. The bonds mature in 15 years, have a face value of $1,000, and sell at 92 percent of par. What is the capital structure weight of the common stock?

Multiple Choice

  • .5629
  • .3400
  • .4161
  • .3966
  • .5117

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