$($Calculating the weighted average cost of capital$)$ You are working as a consultant to the Lulu Athletic Clothing Company, and you have been asked to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. You have determined the market value of the firm's current capital structure $($which the firm considers to be its target mix of financing sources$)$ as follows:

To finance the purchase, Lulu will sell $20-$year bonds with a $$1,000$ par value paying $6\mathrm{.}1$ percent per year $($with interest paid semiannually$)$ at the market price of $$1,012.$ Preferred stock paying a $$2\mathrm{.}54$ dividend can be sold for $$35\mathrm{.}67.$ Common stock for Lulu is currently selling for $$50\mathrm{.}78$ per share. The firm paid a $$4\mathrm{.}03$ dividend last year and expects dividends to continue growing at a rate of $3\mathrm{.}7$ percent per year for the indefinite future. The firm's maginal tax.rate is $34$ percent. What discount rate should you use to

Bonds: $$270,000$

Preferred Stock: $$220,000$

Common Stock: $$520,000$

evaluate the warehouse project?

a$.$ Calculate component weights of capital.

The weight of debt in the firm's capital structure is

$\%.($Round to two decimal places.$)$