What is the weight of debt? Hint: remember that the weights mist sum to 1.0

1. WACC 8.00%

2. Weight of Preferred Stocks 5.00%

3. After-tax Cost of Debt 4.60%

4. Cost of Preferred Stock 8.20%

5. Cost of Common Stock 10.40%

6. Weight of debt?

A) 0.05

B) 0.4136

C) 0.08

D) 0.3948

E) 0.1040