Answer:
0.34
Explanation:
Debt = 1.4 million dollars
Preferred stock = 1.5 million
Common equity = 1.2 million
We are to calculate the Weight on debt
The total value of funds=
Debt + preferred stock + common equity
= (1.4 + 1.5 + 1.2) million
= $4.1 million
So Weight on debt
Debt/total value of funds
= 1.4milloin / 4.1 million
= 0.3415
= 0.34