Accessory Industries Has 2 Million Shares of Common Stock Outstanding

question 30

Multiple Choice

Accessory Industries has 2 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 100 thousand bonds. If the common shares are selling for $22 per share, the preferred shares are selling for $10.50 per share, and the bonds are selling for 96 percent of par ($1000) , what would be the weights used in the calculation of Accessory's WACC for common stock, preferred stock, and bonds, respectively?

• A) 33.33%, 33.33%, 33.33%
• B) 29.23%, 6.98%, 63.79%
• C) 64.52%, 32.26%, 3.22%
• D) 17.12%, 8.17%, 74.71%

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Definitions:

Oxygen Saturation

A measure of the amount of oxygen-carrying hemoglobin in the blood relative to the amount of hemoglobin not carrying oxygen, indicative of the efficiency of oxygen delivery to tissues.

Respiratory Rate

The number of breaths a person takes per minute; it's a critical vital sign used to assess respiratory health.

Pneumonia

An infectious disease affecting one or both lungs, often caused by bacteria, viruses, or fungi, leading to the inflammation of the air sacs in the lungs which may fill with fluid or pus.

Korotkoff's Sounds

The sounds heard while using a stethoscope during the measurement of blood pressure with a sphygmomanometer, indicating the resumption of blood flow to the artery.