Strolling Corporation is constructing its Cost of Capital schedule. The firm is at its target capital structure. Its 15-year bonds have a 4.5% coupon rate and sell for $948. Bond coupons are semi-annual. Strolling's stock beta is 1.3, the risk-free rate is 3.0%, and the market risk premium on the market portfolio is 7.0%. Strolling is a constant growth firm and just paid a dividend of $1.50. The stock sells for $35.00 and has a growth rate of 5.1%. The firm’s tax rate is 30%. The firm’s book value balance sheet is as follows: Assets $35,600, Long Term Debt $36,000, Equity ($1.00 par) $3,874, Retained Earnings -$4,274, Comprehensive Income $1,500.
To the nearest 0.1%, what is the weight of debt that should be used in computing the Weighted Average Cost of Capital?