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 5 thousand bonds. If the common shares sell for $17 per share, the preferred shares sell for $126 per share, and the bonds sell for 117 percent of par ($1,000) , what weight should you use for preferred stock in the computation of OMG's WACC?

A) 28.91 percent
B) 31.58 percent
C) 47.91 percent
D) 83.66 percent