Global Enterprise, Inc. has two bond issues outstanding. The first bond issue (which matures in 10 years) has a face value of $85 million with a 6 percent coupon, and sells for 92 percent of its face value. The second issue (which matures in 7 years) has a face value of $53.76 million with a 6 percent coupon, and sells for 94.7 percent of its face vale. The first issue has 7.13 percent yield to maturity, while the second has 6.76 percent yield to maturity.

The company also has 9.6 million shares of common stock outstanding. The current share price is $51, and the book value per share is $4. The most recent dividend was $3.4 and the dividend growth rate is 4.3 percent.

Additional Information: Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 31 percent.

Using the information above, help Global Enterprise to calculate its cost of capital by filling the blank area below (using drag and drop)

COMPANY'S COST OF CAPITAL

• Weight of Equity = blank percent

• Weight of Debt (First Bond Issue) = blank percent

• Weight of Debt (Second Bond Issue) = blank percent

• Cost of Equity = blank percent

• Cost of Capital = blank percent