Question 15 (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 $65 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%? A) 8.93% OB) 8.46% OC) 8.58% OD) 8.10% E) 7.86% Previous Page Next Page Page 15 of 19