OMG Inc Has 4 Million Shares of Common Stock Outstanding, 3

Multiple Choice

OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 50 thousand bonds. If the common shares are selling for $21 per share, the preferred shares are selling for $10 per share, and the bonds are selling for 111% of par ($1000) , what weight should you use for debt in the computation of OMG's WACC?

A) 32.74%
B) 29.86%
C) 25.79%
D) 21.86%