1. what is the current cost of phillips debt capital?
2. what is phillips weight averaged cost of capital?

Phillips' current capital structure is comprised of $450,000,000 in debt, $300,000,000 in preferred equity, and $200,000,000 in common equity. Phillips currently has issued bonds that mature in 10 years with a coupon rate of 3% and a current market price of $845. Preferred shares of Phillips are trading at $16/ share and pay an annual dividend of $0.85/ share. Common stock of Phillips has a beta of 1.6 and trades at $60 /share. The 10-year US treasury yield is 3.0\%. The market risk premium is estimated at 9.25%. Their tax rate is 35%. Round answers to four decimal places (ie .1125 or 11.25% ) Phillips' current capital structure is comprised of $450,000,000 in debt, $300,000,000 in preferred equity, and $200,000,000 in common equity. Phillips currently has issued bonds that mature in 10 years with a coupon rate of 3% and a current market price of $845. Preferred shares of Phillips are trading at $16/ share and pay an annual dividend of $0.85/ share. Common stock of Phillips has a beta of 1.6 and trades at $60 /share. The 10-year US treasury yield is 3.0\%. The market risk premium is estimated at 9.25%. Their tax rate is 35%. Round answers to four decimal places (ie .1125 or 11.25% )