S&W Has 21,000 Shares of Common Stock Outstanding at a Price

question 8

Multiple Choice

S&W has 21,000 shares of common stock outstanding at a price of $29 a share.It also has 2,000 shares of preferred stock outstanding at a price of $71 a share.The firm has 7 percent, 12-year bonds outstanding with a total market value of $386,000.The bonds are currently quoted at 100.6 percent of face and pay interest semiannually.What is the capital structure weight of the firm's preferred stock if the tax rate is 34 percent?

• A)12.49 percent
• B)9.00 percent
• C)8.24 percent
• D)11.84 percent
• E)13.63 percent

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Definitions:

Psychoanalysis

A therapeutic approach founded by Sigmund Freud focusing on uncovering and interpreting unconscious desires and conflicts.

Person-Centered

A therapeutic approach that emphasizes the importance of the individual's personal experience and self-concept in the therapeutic process.

Inner Potential

The innate capacity or ability within an individual to achieve growth, development, or success.

Therapy

A general term for the treatment of disorders or illness, mental or physical, through systematic intervention, often involving specific techniques or approaches.