Question: This problem deals with figuring out the Weighted Average Cost of Capital WACC. How do you figure out the weight and which one should be

This problem deals with figuring out the Weighted Average Cost of Capital WACC. How do you figure out the weight and which one should be used for the preferred stock for the given company?

A given company has 5 million shares of common stock that is outstanding and has 2 million shares of preferred stock that is outstanding, also it has 6, 000 bonds. The common shares are $15 per share, preferred share is $14 and the bonds are at 107 percent of par.

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