weights)

Wingate Metal Products, Inc. sells materials to contractors who construct metal warehouses, storage buildings, and other structures. The firm has estimated its weighted average cost of capital to be

10.4%

based on the fact that its after-tax cost of debt financing was

9

percent and its cost of equity was

11

percent. What are the firm's capital structure weights (that is, the proportions of financing that came from debt and equity)?

What is the proportion of debt financing?