1.2.

Here I Sit Sofas has 7,200 shares of common stock outstanding at a price of $95 per share. There are 640 bonds that mature in 31 years with a coupon rate of 6.9 percent paid semiannually. The bonds have a par value of $2,000 each and sell at 109 percent of par. The company also has 6,100 shares of preferred stock outstanding at a price of $48 per share. What is the capital structure weight of the debt? Judy's Boutique just paid an annual dividend of $3.01 on its common stock. The firm increases its dividend by 3.70 percent annually. What is the company's cost of equity if the current stock price is $41.08 per share