What is the weight of the preferred stock

Reference no: EM13289636

The Auto Group has 1,300 bonds outstanding that are selling for $1,050 each. The company also has 7,400 shares of preferred stock at a market price of $50 each. The common stock is priced at $35 a share and there are 30,000 shares outstanding. What is the weight of the preferred stock as it relates to the firm's weighted average cost of capital?

Reference no: EM13289636

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