JKL has 3 million shares of common stock outstanding and 80,000 bonds outstanding. The bonds pay semi-annual coupons at

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answerhappygod
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JKL has 3 million shares of common stock outstanding and 80,000 bonds outstanding. The bonds pay semi-annual coupons at

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JKL has 3 million shares of common stock outstanding and 80,000
bonds outstanding. The bonds pay semi-annual coupons at an annual
rate of 9.05%, have 6 years to maturity and a face value of $1,000
each. The common stock currently sells for $30 a share and has a
beta of 1. The bonds sell for 94% of face value and have a 10.42%
yield to maturity. The market risk premium is 5.5%, T-bills are
yielding 5% and the tax rate is 30%. What is the firm's capital
structure weight for equity?
Group of answer choices
54.48%
18.30%
48.80%
51.20%
45.52%
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