question archive Bill's Boards (BB) has 20 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 20 thousand bonds

Bill's Boards (BB) has 20 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 20 thousand bonds

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Bill's Boards (BB) has 20 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 20 thousand bonds. If the common shares are selling for $30 per share the preferred shares are selling for $17 per share, and the bonds are selling for 99% of par (par value is $ 1,000), what would be the weight used for debt in the computation of BB's WACC? 0.83% 2.88% 3.33% 2.79%

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