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The Auto Group has 1,000 bonds outstanding that are selling for $810 each. The company also has 8,000 shares of preferred stock at a market
The Auto Group has 1,000 bonds outstanding that are selling for $810 each. The company also has 8,000 shares of preferred stock at a market price of $50 each. The common stock is priced at $45 a share and there are 26,000 shares outstanding. What is the weight of the preferred stock as it relates to the firm's weighted average cost of capital?
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