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A firm has 1 million shares of common stock, 100,000 shares of preferred stock, and 50,000 bonds. The common stock is priced at $73/share, the
A firm has 1 million shares of common stock, 100,000 shares of preferred stock, and 50,000 bonds. The common stock is priced at $73/share, the preferred stock is priced at $79/share, and the bonds are priced at par. The tax rate is 21%. What is the weight of debt in the capital structure? (Report your answer as a decimal to three decimal places, e.g. 31.9% is 0.319)
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