Pumpkin Pie Industries Has 5 Million Shares of Common Stock

Multiple Choice

Pumpkin Pie Industries has 5 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10 thousand bonds. If the common shares are selling for $50 per share, the preferred shares are selling for $31 per share, and the bonds are selling for 98 percent of par ($1,000) , what would be the weights used in the calculation of Pumpkin Pie's WACC for common stock, preferred stock, and bonds, respectively?

A) 33.33 percent, 33.33 percent, 33.33 percent
B) 83.19 percent, 16.64 percent, 0.17 percent
C) 85.97 percent, 10.67 percent, 3.38 percent
D) 27.93 percent, 17.32 percent, 54.75 percent