1. Kyle, the manager at U-Haul Storage, is determining a return rate to use for the firms cost of capital. The following information is available:

Total secured debt $78,500,000

Total stockholders equity $21,500,000

Cost of debt financing 8.5%

Cost of equity financing 18%

1. What proportion of the companys total financing comes from debt?
2. What proportion of the companys total financing comes from equity?
3. Calculate the companys blended cost of capital rate.
4. What is the companys debt to equity ratio?