1. MV Corporation has debt with market value of $100 million, common equity with a book value of $104 million, and preferred stock worth $17 million outstanding. Its common equity trades at $55 per share, and the firm has 6.1 million shares outstanding. What weights should MV Corporation use in its WACC?

a. Weight for debt: 20.18%; weight for preferred stock: 5.76%; weight for common equity: 64.17%.

b. Weight for debt: 22.08%; weight for preferred stock: 3.75%; weight for common equity: 74.17%.

c. There is not enough information to answer this question.

d. Weight for debt: 12.51%; weight for preferred stock: 2.45%; weight for

common equity: 71.47%.

* Please solve without the excel sheet.