1.) Estimate the firms weights of debt, preferred stock, and common stock using the firms balance sheet (book value).

2.) Estimate the firms weights of debt, preferred stock, and common stock using the market value of each capital component.

Balance Sheet (All items in Millions except Per Share data)

	12/31/2020
Assets
Cash & Equivalents	4
Receivables	0
Notes Receivable	0
Inventories	0
Other Current Assets	1
Total Current Assets	5
Net Property & Equipment	0
Investments & Advances	0
Other Non-Current Assets	0
Deferred Charges	0
Intangibles	0
Deposits & Other Assets	0
Total Assets	5

Liabilities & Shareholders Equity	12/31/2020
Notes Payable	2
Accounts Payable	1
Current Portion Long-Term Debt	0
Current Portion Capital Leases	0
Accrued Expenses	4
Income Taxes Payable	0
Other Current Liabilities	0
Total Current Liabilities	7
Mortgages	0
Deferred Taxes/Income	0
Convertible Debt	0
Long-Term Debt	8
Non-Current Capital Leases	0
Other Non-Current Liabilities	0
Minority Interest (Liabilities)	0
Total Liabilities	15

Shareholders Equity	12/31/2020
Preferred Stock	0
Common Stock (Par)	0
Capital Surplus	151
Retained Earnings	-161
Other Equity	0
Treasury Stock	0
Total Shareholder's Equity	-10
Total Liabilities & Shareholder's Equity	5
Total Common Equity	-10
Shares Outstanding	NA
Book Value Per Share	0.00