Dee's Dress Emporium has 50,000 shares of common stock outstanding at a price of $27 a share.It also has 1000 shares of preferred stock outstanding at a price of $20 a share.There are 800bonds outstanding that have a semiannual coupon payment of $25.The bonds mature in four years, have a face value of $1,000, and sell at 97 percent of par.What is the capital structure weight of the common stock?
A) 48.20 percent
B) 50.00 percent
C) 48.15 percent
D) 62.91 percent
E) 50.08 percent
Correct Answer:
Verified
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