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Sagot :
Answer:
0.4485
Explanation:
Calculation to determine the capital structure weight of the common stock
First step is to calculate the Value of Common Stock
Value of Common Stock = 11,400(48)
Value of Common Stock= $547,200
Second step is to calculate Value of Preferred Stock
Value of Preferred Stock = 275(90)
Value of Preferred Stock = $24,750
Third step is to calculate the Value of Debt
Value of Debt = 1.08(2,000)(300)
Value of Debt= $648,000
Now let calculate the Weight of common stock
Weight of common stock =$547,200 /(547,200 + 24,750 + 648,000)
Weight of common stock=$547,200/$1,219,950
Weight of common stock = 0.4485
Therefore the capital structure weight of the common stock is 0.4485
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