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Please answer the following, based on the information provided for the firm ABC: the company finances its operations and growth opportunities, using common equity, debt,

Please answer the following, based on the information provided for the firm ABC: the company finances its operations and growth opportunities, using common equity, debt, and preferred equity.

The total debt ratio is 0.6, the ratio of the market value of preferred equity divided by the value of total assets is 0.2. Assume the risk-free rate of 2%, the corporate tax rate of 30%, and the market risk premium of 7%.

What are ABCs capital structure weights: weight on debt, weight on preferred equity, and weight on common equity, respectively?

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