Problem:
AisleRiot Group has 1,080 bonds outstanding that are selling for $1,174 each. The company also has 7,320 shares of preferred stock at a market price of $53 each. The common stock is priced at $42 a share and there are 32,655 shares outstanding.
Requirement:
Question: What is the weight of the preferred stock as it relates to the firm's weighted average cost of capital?
Note: Please show basic calculation