Solar Shades Has 8 Million Shares of Common Stock Outstanding

Multiple Choice

Solar Shades has 8 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 10 thousand bonds. If the common shares are selling for $13 per share, the preferred shares are selling for $30 per share, and the bonds are selling for 105 percent of par, what would be the weight used for common stock in the computation of Solar Shades' WACC?

A) 33.33 percent
B) 44.35 percent
C) 46.42 percent
D) 66.61 percent