1. AisleRiot Group has 1,051 bonds outstanding that are selling for $1,096 each. The company also has 7,935 shares of preferred stock at a market price of $59 each. The common stock is priced at $49 a share and there are 30,621 shares outstanding. What is the weight of the preferred stock as it relates to the firm's weighted average cost of capital?Enter weight in percents, accurate to two decimal places.
2. BlockOut Co. has 76,061 bonds outstanding that are selling at par value. The bonds yield 8.5 percent. The company also has 4.1 million shares of common stock outstanding. The stock has a beta of 1.35 and sells for $46.2 a share. The U.S. Treasury bill is yielding 4.6 percent and the market risk premium is 7.2 percent. Blackout's tax rate is 34 percent. What is the firm's weighted average cost of capital? (Enter answer in percents.)
3. Dominosa, Inc. wants to have a weighted average cost of capital of 8.2 percent. The firm has an aftertax cost of debt of 5.2 percent and a cost of equity of 11.6 percent. What debt ratio is needed for the firm to achieve their targeted weighted average cost of capital? Enter the answer in percents.