Shares of preferred stock outstanding

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Tom and Jerry's has 3.7 million shares of common stock outstanding, 3.7 million shares of preferred stock outstanding, and 27.00 thousand bonds. If the common shares are selling for $14.70 per share, the preferred shares are selling for $11.70 per share, and the bonds are selling for 99.83 percent of par, what would be the weight used for equity in the computation of Tom and Jerry's WACC?

33.33%

49.82%

43.64%

77.43%

Reference no: EM131581082

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