K's Bridal Shoppe has 4,000 shares of common stock outstanding at a price of $13 a share.It also has 500 shares of preferred stock outstanding at a price of $22 a share.There are 50 bonds 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 98 percent of par.What is the capital structure weight of the common stock?
A) 48.20 percent
B) 49.68 percent
C) 48.15 percent
D) 46.43 percent
E) 50.08 percent
Correct Answer:
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