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

Highpark Industrial has a $500,000 bond issue outstanding that is selling at 96 percent 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?

A) 9 percent
B) 13 percent
C) 17 percent
D) 21 percent
E) 26 percent