Problem:
Team Sports has 5.1 million shares of common stock outstanding, 3.1 million shares of preferred stock outstanding, and 31 thousand bonds. If the common shares are selling for $4.10 per share, the preferred share are selling for $16.1 per share, and the bonds are selling for 98.89 percent of par, what would be the weight used for equity in the computation of Team's WACC?
Note: Provide support for your rationale.