Problem:
ABC, Inc., has 748 shares of common stock outstanding at a price of $75 a share. They also have 771 shares of preferred stock outstanding at a price of $93 a share. There are 101, 8 percent bonds outstanding that are priced at $32. The bonds mature in 16 years and pay interest semiannually.
Requirement:
Question: What is the capital structure weight of the preferred stock?
Note: Please show guided help with steps and answer.