WhackAmOle has 3 million shares of common stock outstanding, 2.0 million shares of preferred stock outstanding, and 75,000 bonds. Assume the common shares are selling for $60 per share, the preferred shares are selling for $53.00 per share, and the bonds are selling for 103 percent of par.
What would be the weights used in the calculation of WhackAmOle’s WACC?
Equity weight %
Preferred stock weight %
Debt weight %