Rings N Things Industries Has 40 Million Shares of Common

Multiple Choice

Rings N Things Industries has 40 million shares of common stock outstanding, 20 million shares of preferred stock outstanding, and 50 thousand bonds. If the common shares are selling for $25 per share, the preferred shares are selling for $15 per share, and the bonds are selling for 100 percent of par ($1000) , what would be the weights used in the calculation of Ring's WACC for common stock, preferred stock, and bonds, respectively?

A) 33.33%, 33.33%, 33.33%
B) 74.07%, 22.22%, 3.71%
C) 66.61%, 33.31%, 0.08%
D) 17.86%, 10.71%, 71.43%