7.

7. A firm has 12,500 shares of stock outstanding that sell for $42 each. The book value of equity is $400,000. The firm has also issued $250,000 book value of debt, with market value quoted at $253,000. The firm has no preferred stock. What is the capital structure weight of equity when computing WACC? A. 67.48% B. 72.09% C. 61.54% D. 69.74%