Problem:
Market Basket, Inc., has 125,000 shares of common stock outstanding at a price of $43 a share. They also have 25,000 shares of preferred stock outstanding at a price of $55 a share. There are 10,000, 8 percent bonds outstanding that are priced at 99 percent of face value. The bonds mature in 16 years and pay interest semiannually.
Required
Question: What is the capital structure weight of the preferred stock?
Note: Please answer in proper manner and show all computations