Sports Corp has 11.5 million shares of common stock outstanding, 6.5 million shares of preferred stock outstanding, and 2.5 million bonds. If the common shares are selling for $26.5 per share, the preferred share are selling for $14.0 per share, and the bonds are selling for 96.85 percent of par, what would be the weight used for equity in the computation of Sports's WACC?

56.10%

10.82%

33.33%

12.13%

2. Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent and the maximum allowable discounted payback is 3 years.

Time:	0	1	2	3	4	5
Cash flow:	-1,000	450	530	450	350	200

	2.45 years, accept
	2.83 years, accept
	4.83 years, reject
	3.45 years, reject