What weight should be assigned to the preferred stock

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Reference no: EM13288494

Garfield and Moore has 130,000 shares of common stock outstanding at a price per share of $41.20. There are 12,000 shares of preferred stock outstanding at a price of $58 a share. The firm also has 2,500 bonds outstanding that are currently selling at par. Each bond has a $1,000 face value. What weight should be assigned to the preferred stock when computing this firm's WACC?

Reference no: EM13288494

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