You are assigned to estimate the firms Weighted-Average-Cost-of-Capital (WACC) in order to evaluate capital budgeting opportunities. The company operates in the 20% marginal tax bracket. There are three classes of long-term liabilities and equity outstanding.There is an issue of 45,000 shares of preferred stock that have a $100 par value and pay 4.70% (perpetual) annual dividends. These shares are currently trading for $63.51.

-What is the weight on the preferred stock?