S&W Has 21,000 Shares of Common Stock Outstanding at a Price

Multiple Choice

S&W has 21,000 shares of common stock outstanding at a price of $29 a share.It also has 2,000 shares of preferred stock outstanding at a price of $71 a share.The firm has 7 percent, 12-year bonds outstanding with a total market value of $386,000.The bonds are currently quoted at 100.6 percent of face and pay interest semiannually.What is the capital structure weight of the firm's preferred stock if the tax rate is 34 percent?

A) 12.49 percent
B) 9.00 percent
C) 8.24 percent
D) 11.84 percent
E) 13.63 percent