1. Further From Center has 11,500 shares of common stock outstanding at a price of $49 per share. it also has 280 shares of preferred stock outstanding at a price of $91 per share. There are 310 bonds outstanding that have a coupon rate of 6.8 percent paid semiannually. The bonds mature in 30 years, have a face value of $2,000, and sell at 108.5 percent par. What is the capital structure weight of the preferred stock? Please show work.

2. If the risk premium on the stock market was 6.54 percent and the risk-free rate was 2.46 percent, what is the stock market return? Please show work.