The Silver Nugget has 16,000 shares of common stock and 4,000 shares of preferred stock outstanding. The common stock is valued at $29 a share and the preferred is priced at $43 a share. The firm also has a $150,000 bond issue outstanding that is currently priced at 100.4 percent of par. What weight should be given to the debt when the WACC is computed? Question 1 options:

1) 16.27 percent

2) 16.83 percent

3) 18.99 percent

4) 19.15 percent