Covid Contractors has 500,000 shares of common stock outstanding, 200,000 shares of preferred stock outstanding, and 20,000 bonds ($1,000 par). The common shares are selling for $40.00 per share, the preferred share are selling for $50 per share, and the bonds are selling at par.  a. What would be the weight used for common stock in the computation of Team's WACC?    b. What would be the weight used for preferred stock in the computation of Team's WACC?    c. What would be the weight used for bonds in the computation of Team's WACC?

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.