What is the weight of the common stock

Reference no: EM132000365

Question: Michael's Lawn Service has 2,000 bonds outstanding. These bonds are selling for $800 each. His company also has 1,500 shares of preferred stock with a market price of $32 a share. His common stock is priced at $42 a share and there are 32,000 shares outstanding. What is the weight of the common stock as it relates to the firm's weighted average cost of capital?

Reference no: EM132000365

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