Green Yards Has a Capital Structure of 50 Percent Common

Green Yards has a capital structure of 50 percent common stock, 15 percent preferred stock, and 35 percent debt. The flotation costs are 3 percent for debt, 6 percent for preferred stock, and 8
Percent for common stock. What is the weighted average flotation cost?

A) 5.20 percent
B) 5.47 percent
C) 5.54 percent
D) 5.88 percent
E) 5.95 percent