Page 1 Previous Page Next Page Page 16 of 19 1 Page 2: Question 16 (Mandatory) (1 point) Smith and Weston Corp. has 55,000 shares of common stock outstanding at a price of $31 a share. It also has 3,000 shares of preferred stock outstanding at a price of $60 a share. The firm has 8%, 12-year bonds outstanding with a total face value of $400,000. The bonds are currently quoted at 101.2% of face and pay interest semiannually. What is the capital structure weight of the firm's preferred stock if the tax rate is 35% 2 Page 3: 3 A) 8.10% Page 4 B) 8.93% 4 C) 8,46% Page 5: D) 8.58% 5 E) 7.86% 0 DEN