Answer:
weight of preferred stock = 4.63 %
Explanation:
given data
Number of outstanding bonds = 750
selling price = $989 each
preferred stock = 2,500 shares
market price = $47 a share
number of common stock = 30,000
common stock valued = $56 share
solution
we first get here total market value that is express as
total market value = Number of outstanding bonds × selling price per bond + number of preferred stock × market price per share + number of common stock × par value per share ......................1
put here value and we get
total market value = 750 × $989 + 2,500 × $47 + 30,000 × $56
solve it we get
total market value = $2539250
and
here now we get weight of preferred stock that will be
weight of preferred stock = Total value of preferred stock ÷ total market value × 100 .........................2
put here value
weight of preferred stock = ( 2,500 × $47 ) ÷ $2539250 × 100
weight of preferred stock = 4.63 %
