1. Del Rio Demolition Co. has 16 million shares of common stock with a par of $1.50 with a current stock price of $87. The company has 2 bond issues one issue of 60,000 bonds with a 6.7% interest rate and a current price quote of 96.25. The second issue of 75,000 bonds has a 5.1% interest rate and a current quote of 88.95. The cost of equity is 13.7% while the cost of debt is 5.9%.

A. Calculate the weights for both types of capital using book value weights.

B. Calculate the weights for both types of capital using market value weights.

C. Calculate the WACC using book value weights.

D. Calculate the WACC using market value weights.