Phillips Equipment has 75,000 bonds outstanding that are each selling at $1080 in the market. Each bond has 10 years left to maturity, a $1000 face value and a coupon rate of 5%. Coupons are paid semiannually. The company also has 2 million shares of common stock outstanding. The common stock has a beta of 1.1 and sells for $30 a share. The U.S. Treasury bill is yielding 4 percent and the market risk premium is 6 percent. The corporate tax rate is 34 percent.

(a) Determine the firms market value weights for debt and equity.Enter answers below as a percentage to 2decimal places,but do NOT include the % sign.

MarketValue weight of DEBT is

MarketValue weight of EQUITY is