Accessory Industries Has 2 Million Shares of Common Stock Outstanding

Multiple Choice

Accessory Industries has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 100 thousand bonds. If the common shares are selling for $22 per share, the preferred shares are selling for $10.50 per share, and the bonds are selling for 96 percent of par ($1,000) , what would be the weights used in the calculation of Accessory's WACC for common stock, preferred stock, and bonds, respectively?

A) 33.33 percent, 33.33 percent, 33.33 percent
B) 29.23 percent, 6.98 percent, 63.79 percent
C) 64.52 percent, 32.26 percent, 3.22 percent
D) 17.12 percent, 8.17 percent, 74.71 percent