ABC Inc has 11,000 common shares outstanding. The price per share is $45. The company has 5,000 preferred shares outstanding. The price per share is $92.

The company has 420 bonds outstanding. Each bond has a face value of $1,000 and is currently selling for $950. The bonds have 15 years to maturity and a coupon rate of 5.2%. Coupons are paid annually.

The risk-free rate is 3%. The expected return on the market is 7%. The common stock has a beta of 0.80. The preferred shares just paid a dividend of $5.45 per share. Dividends are paid annually.

What proportion of the firm's assets is financed with debt?

Question 10 options:

	33.3%
	36.6%
	29.5%
	34.0%