Weight of the common stock
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Wilsons Landscaping has 1,200 bonds outstanding that are selling for $990 each. The company also has 2500 shares of preferred stock at a market price of $28. per share. The common stock is priced at $37. a share and there are 28,000 shares outstanding. What is the weight of the common stock as it related to th firms weighted avg. cost of capital?
a. 43.08%
b. 45.16%
c. 47.11%
d. 54.00 %
e. 55.45%
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Solution Summary
The solution explains how to calculate the weight of the common stock in calculating the WACC
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Weight of common stock = Total market value of common stock/Total market value of ...
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