3. Zonk Corp. The following data pertains to Zonk Corp., a manufacturer of ball bearings (dollar amounts in millions):

Total assets	$6,840
Interest-bearing debt	$3,562
Average pre-tax borrowing cost	11.5%
Common equity:
Book value	$2,560
Market value	$12,850
Income tax rate	35%
Market equity beta	1.24

A)Determine the weight on debt capital that should be used to calculate Zonks weighted-average cost of capital: A. 21.7% B. 78.3% C. 50% D. 58.2%

B) Determine the weight on equity capital that should be used to calculate Zonks weighted-average cost of capital: A. 21.7% B. 78.3% C. 41.8% D. 50%

C) Using the above information, calculate Zonks weighted-average cost of capital: A. 11.5% B. 11.89% C. 7.48% D. 10.90%