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Question
Use the following information to answer the following question(s).The following data concerning Grafton Computer Peripherals' capital structure is available.
| $ millions | Book Values | Market Values |
| Accounts Payable & Accruals | $100 | |
| Short-term notes | 50 | 50 |
| Long-term debt | 150 | 200 |
| Preferred Stock | 25 | 50 |
| Common Stock | 200 | 500 |
| Total | $525 | $800 |
The percentage of common stock in Grafton's weighted average cost of capital is:
A) 38.1%.
B) 20%.
C) 6.25%.
D) 62.5%.
Answer
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