What is the capital structure weight of the preferred stock

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Question - Market Basket, Inc., has 125,000 shares of common stock outstanding at a price of $43 a share. There also have 25,000 shares of preferred stock outstanding at a price of $55 a share. There are 10,000, 8 percent bonds outstanding that are priced at 99 percent of face value. The bonds mature in 16 years and pay interest semiannually. What is the capital structure weight of the preferred stock?

a. 7.68 percent

b. 8.26 percent

c. 9.98 percent

d. 13.67 percent

e. 17.77 percent

Reference no: EM132596800

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