Bill's Boards Has 20 Million Shares of Common Stock Outstanding

Multiple Choice

Bill's Boards 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 96 percent of par, what would be the weight used for debt in the computation of Bill's WACC?

A) 0.83%
B) 2.79%
C) 2.87%
D) 3.33%