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Town Beverage has 8 million shares of common stock outstanding,6 million shares of preferred stock outstanding, and 5 thousandbonds. If the common shares are selling for $20 per share, thepreferred shares are selling for $10 per share, and the bonds areselling for 105 percent of par, what would be the weight used forpreferred stock in the computation of Town Beverage's WACC?A. 26.64% B. 27.27% C. 29.85% D. 33.33% E. 42.84%Echo Sound has 4 million shares of common stock outstanding,500,000 shares of preferred stockoutstanding, and 45,000 bonds. If the common shares are selling for$28.50 per share, the preferred sharesare selling for $38.75 per share, and the bonds are selling for96.85 percent of par, what would be the weightused for debt in the computation of Echo Sound's WACC?A. less than 22.70 percentB. more than 22.70 percent but less than 24.15 percentC. more than 24.15 percent but less than 25.60 percentD. more than 25.60 percent but less than 27.05 percentE. more than 27.05 percent