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Theresa’s Flower Garden has 750 bonds outstanding that are selling for $989 each, 2,500 shares of preferred stock with a market price of $47 a share, and 30,000 shares of common stock valued at $56 a share. What weight should be assigned to the common stock when computing the firm's weighted average cost of capital?

47.11 percent

55.45 percent

66.16 percent

54.00 percent

62.08 percent

Financial Management, Finance

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