Continued... B k2 B+E+P k。+ B+E+P Example with $3 in bonds,$6 in equity,and $1 in preferred stock 6 3+6+1 3+6+1 3+6+1 k=W(ke)W(k)+W(kp) k=60%(ke)+30%(k)+10%(k。 渊外楂价货多方是 YO年N0事0E000Continued Continued… ( ) ( ) ( ) p f f i f e f a k B E P P k B E P B k B E P E k + + + + + + + + = Example with $3 in bonds, $6 in equity, and $1 in preferred stock ( ) ( ) ( ) ka ke ki kp 3 6 1 1 3 6 1 3 3 6 1 6 + + + + + + + + = k = W(ke) + W(ki) + W(kp) k = 60%(ke) + 30%(ki) + 10%(kp)