Team Sports has 5.9 million shares of common stock outstanding, 3.9 million shares of preferred stock outstanding,

Question:

Team Sports has 5.9 million shares of outstanding, 3.9 million shares of preferred stock outstanding, and 39 thousand bonds. If the common shares are selling for $4.90 per share, the preferred share are selling for $16.9 per share, and the bonds are selling for 98.81 percent of par, what would be the weight used for equity in the computation of Team's WACC?
a. 33.33%
b. 59.97%
c. 27.68%
d. 21.68%
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...