Problem:
Sports Corp has 11.5 million shares of common stock outstanding, 6.5 million shares of preferred stock outstanding, and 2.5 million bonds. If the common shares are selling for $26.5 per share, the preferred share are selling for $14.0 per share, and the bonds are selling for 96.85 percent of par,
Task:
Question 1: What would be the weight used for equity in the computation of Sports' WACC? Elucidate in detail and specify all computation and methods.