1. Company XYZ has 8.3 million shares outstanding. The current share price is $53, and the book value per share is $4. XYZ has two bonds outstanding.

1. Bond 1 has a face value of $70 million and a 7 percent Coupon rate and sells for 108.3% of par.
2. Bond 2 has a face value of $60 million and 7.5% coupon rate and sells for 108.9% of par.

Bond 1 matures in 8 years, Bond 2 matures in 27 years. All coupon payments are semi-annual.

1. Find the companys capital structure weights on a market value basis. Find the Capital structure weights on a book value basis.

(Book value of the debt = Face Value and the market value of the debt price quote times the face value)

1. Suppose the company has a beta of 1.2, the risk free rate is 3.1percent, and the market risk premium is 7%. What is the WACC? Assume that the tax rate is 35%.