Attempts $$ Keep the Highest $/2$

The basic WACC equation

The calculation of WACC involves calculating the weighted average of the required rates of refurn on debt, preferred stock, and common equity, where the welghts equal the percentage of each type of financing in the firm's overall capital structure.

$q,$ is the symbol that represents the cost of raising capital through retained earnings in the weighted average cost of capital $($WACC$)$ equation.

Raymond Ca$.$ has $$2\mathrm{.}3$ million of debt, $$3$ million of preferred stock, and $$2\mathrm{.}1$ milion of common equity. What would be its weight on debt?

$0\mathrm{.}41$

$0\mathrm{.}45$

$0\mathrm{.}33$

$0\mathrm{.}31$