A company has target values of debt, preferred and common of $23MM, $16MM and $85MM. It has book values of debt, preferred and common of $66MM, $7MM and $18MM. It also has liquidation values of debt, preferred and common of $38MM, $19MM and $6MM. What weights should it use for purposes of estimating WACC?
a. Debt 60.3%; Preferred 30.2%; Common 9.5%
b. Debt 23.4%; Preferred 46.2%; Common 31.4%
c. Debt 18.6%; Preferred 12.9%; Common 68.5%
d. Debt 72.5%; Preferred 7.7%; Common 19.8%