1. If the market value of debt is $197,440, market value of preferred stock is $71,291, and market value of common equity is 432,455, what is the weight of preferred stock?
2. ABC Industries will pay a dividend of $2 next year on their common stock. The company predicts that the dividend will increase by 5 percent each year indefinitely. What is the dividend yield if the stock is selling for $34 a share??