The Auto Group has 1,000 bonds outstanding that are selling for $980 each. The company also has 9,700 shares of preferred stock at a market price of $85 each. The common stock is priced at $80 a share and there are 43,000 shares outstanding. What is the weight of the preferred stock as it relates to the firm's weighted average cost of capital? 7.86 percent 31.44 percent 15.72 percent 65.59 percent 18.69 percent