Highpark Industrial has a $500,000 bond issue outstanding that is selling at 96 % of face value. Highpark also has 6,500 shares of preferred stock and 22,000 shares of common stock outstanding. The preferred stock has a market price of $50 a share compared to a price of $35 a share for the common stock. What is the weight of the preferred stock as it relates to the firm's weighted average cost of capital?

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The Answer of Highpark Industrial has a $500,000 bond issue outstanding that is selling at 96 % of face value. Highpark also has 6,500 shares of preferred stock and 22,000 shares of common stock outstanding. The preferred stock has a market price of $50 a share compared to a price of $35 a share for the common stock. What is the weight of the preferred stock as it relates to the firm's weighted average cost of capital?

Highpark Industrial Has a $500,000 Bond Issue Outstanding That Is