Rings N Things Industries Has 40 Million Shares of Common

question 17

Multiple Choice

Rings N Things Industries has 40 million shares of common stock outstanding, 20 million shares of preferred stock outstanding, and 50 thousand bonds. If the common shares are selling for $25 per share, the preferred shares are selling for $15 per share, and the bonds are selling for 100 percent of par ($1,000) , what would be the weights used in the calculation of Rings' WACC for common stock, preferred stock, and bonds, respectively?

• A) 33.33 percent, 33.33 percent, 33.33 percent
• B) 74.07 percent, 22.22 percent, 3.71 percent
• C) 66.61 percent, 33.31 percent, 0.08 percent
• D) 17.86 percent, 10.71 percent, 71.43 percent

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Definitions:

Regulate Relationships

The act of managing interactions and connections between individuals or groups to ensure positive outcomes.

Performance/Satisfaction Relationship

The correlation between an individual's job performance and their level of job satisfaction, indicating how one may affect the other.

Allocating Rewards

Allocating rewards involves distributing incentives or benefits to individuals or groups based on their performance, contribution, or needs.

Impact On Us

The effects or consequences of an event, action, or decision on individuals or groups.