Question:
Wild Wings has 80,000 shares of common stock outstanding at a price of $28 a share. It also has 15,000 shares of preferred stock outstanding at a price of $63 a share. There are 500 - 8.5 percent bonds outstanding that are priced at par. The bonds mature in 14 years, pay interest semiannually, and have a face value of $1,000. What is the capital structure weight of the preferred stock?