Peter Johnson, the CFO of Homer Industries, Inc. is trying to determine the Weighted Cost of Capital (WACC) based on two different capital structures under consideration to fund a new project. Assume the company's tax rate is 30%.

Component	Scenario 1	Scenario 2	Cost of capital	Tax rate
Debt	$4,000,000	$1,000,000	8%	30%
Preferred stock	1,200,000	1,500,000	10%
Common stock	1,000,000	3,700,000	13%
Total	$6,200,000	$6,200,000

Complete the following, providing a full explanation:

Component	Scenario 1 weight %	Scenario 2 weight %	Scenario 1 weighted cost	Scenario 2 weighted cost	Cost of capital	Tax rate
Debt	64.52	16.13			8%	30%