ABC Corporations value is $500,000. Its debt is $100,000. Preferred stock is $50,000. Its 30-year bond is currently sold at $1,050. The coupon rate is 8%. It just paid $2 dividend for preferred stock holders last quarter. The dividend they just paid to their shareholders was $1.5. We expect the dividend growth rate is 4% annually. The current market price of a common stock is $15, and the preferred stock is currently traded at $80. The corporate tax rate for ABC corporation e is 35%. The 3-month T-Bill is 3%. ABC Corporation has the beta of 2.5. The market return is expected to be 8% per year.

What is the weight of preferred stock?

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