Problem:
BetterPie Industries has 8 million shares of common stock outstanding, 6 million shares of preferred stock outstanding, and 25,000 bonds. Assume the common shares are selling for $47 per share, the preferred shares are selling for $24.50 per share, and the bonds are selling for 99 percent of par.
Required:
Question: What would be the weights used in the calculation of BetterPie's WACC?
Note: Please explain comprehensively and give step by step solution.