10. Santa Claus Enterprises has $3,400,000 market value of common stock outstanding. The firm also has two bond issues outstanding. The first bond issue has a total face value of $230,000, pays 7.1 percent interest annually, and currently sells for 103.1 percent of face value. The second bond issue consists of 5,000 bonds that are selling for $887 each. These bonds pay 6.5 percent interest annually and mature in eight years. The tax rate is 21 percent. What is the capital structure weight of the firm's debt?

A. 57.88 percent

B. 54.94 percent

C. 55.50 percent

D. 93.66 percent

10. Santa Claus Enterprises has $3,400,000 market value of common stock outstanding. The firm also has two bond issues outstanding. The first bond issue has a total face value of $230,000, pays 7.1 percent interest annually, and currently sells for 103.1 percent of face value. The second bond issue consists of 5,000 bonds that are selling for $887 each. These bonds pay 6.5 percent interest annually and mature in eight years. The tax rate is 21 percent. What is the capital structure weight of the firm's debt? A. 57.88 percent B. 54.94 percent C. 55.50 percent D. 93.66 percent