Capital structure weight of preferred stock

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Wild Wings has 80,000 shares of common stock outstanding at a price of $28 a share. It also has 15,000 shares of preferred stock outstanding at a price of $63 a share. There are 500 - 8.5 percent bonds outstanding that are priced at par. The bonds mature in 14 years, pay interest semiannually, and have a face value of $1,000. What is the capital structure weight of the preferred stock?

1. 18.87%

2. 21.21%

3. 25.64%

4. 26.29%

5. 32.18%

Reference no: EM1337035

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