Florida Groves Has a $380,000 Bond Issue Outstanding That Is

Florida Groves has a $380,000 bond issue outstanding that is selling at 97.4 percent of face value. The firm also has 2,600 shares of preferred stock valued at $61 a share and 37,500 shares of common stock valued at $19 a share. What weight should be assigned to the common stock when computing the weighted average cost of capital?

A) 55.75 percent
B) 62.20 percent
C) 58.75 percent
D) 61.03 percent
E) 57.40 percent