Homework Answers
Market value of bonds = 1,000 * 970 = 970,000
Market value of preferred stock = 9,600 * 80 = 768,000
Market value of common stock = 42,000 * 75 = 3,150,000
total market value = 970,000 + 768,000 + 3,150,000 = 4,888,000
Weight of preferred stock = ( 768,000 / 4,888,000) * 100
Weight of preferred stock = 0.1571 or 15.71%
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