Determine the weights of each component in the capital structure: Use the amount of retained earnings (5,150,000) provided.

Determine the weights of each component in the capital structure: Use the amount of retained earnings (5,150,000) provided. The % composition(weights) in the capital structure for bonds, preferred stock and common equity should be based on the current capital structure long-term financing of 18,750,000. Common equity will remain at the current weight throughout the case and the combined tax rate is 35%