Smith and Weston Corp. has 55,000 shares of common stock outstanding at a price of $31...

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Smith and Weston Corp. has 55,000 shares of common stock outstanding at a price of $31 a share. It also has 3,000 shares of preferred stock outstanding at a price of $66 a share. The firm has 8%, 12-year bonds outstanding with a total face value of $400,000. The bonds are currently quoted at 101.2% of face and pay interest semiannually. What is the capital structure weight of the firm's preferred stock if the tax rate is 35%? Smith and Weston Corp. has 55,000 shares of common stock outstanding at a price of $31 a share. It also has 3,000 shares of preferred stock outstanding at a price of $66 a share. The firm has 8%, 12-year bonds outstanding with a total face value of $400,000. The bonds are currently quoted at 101.2% of face and pay interest semiannually. What is the capital structure weight of the firm's preferred stock if the tax rate is 35%?

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