Using the balance sheet provided for Universal Exports, determine the weighted average cost of capital. The firm's tax rate is 35%, the preferred stock pays a dividend of $0.40 per share, the beta of the stock is 1.51, the market risk premium is 5%, and the risk-free rate is 5%.

Assume that the book value capital structure weights are the company's optimal weights.

Universal Exports Balance Sheet ($ millions)
Assets		Liabilities & Owner's Equity
Cash and Short-Term Securities	$5	Bonds (12% annual coupon, 20-year maturity, 13% YTM)	$14
Accounts Receivable	4	Preferred Stock (market price=$3.11)	8
Inventories	8	Common Stock	15
Plant and Equipment	20
Total	37	Total	37

What is the proportion of debt in the firm's capital structure, d?

?%

(Round to two decimal places.)

What is the proportion of preferred stock in the firm's capital structure, p?

answer?%

(Round to two decimal places.)

What is the proportion of common equity in the firm's capital structure, e?

%?

(Round to two decimal places.)

What is the after-tax cost of debt for Universal Exports?

?%

(Round to two decimal places.)