Question 3 (4 points) Suppose Lightning II Inc. has the following information, what is its weight of equity? It has a 40% corporate tax rate, its WACC is 12,59%, and is funded as follows Equity has a return of 14% $19,000,000 debt with a 11% pre-tax cost of debt $32,000,000 preferred with a 13% cost of preferred a) $53 million b) $62 million C) $71 million d) $44 million Previous Page Page 3 of 26 11 1 $ 3 $ 4 2 5 6 7 8 9 W E R T Z Z U 0 P S D F G H J L @ C V B N M