A company has 1,000 bonds outstanding that are selling for $1,201.25 each. The company also has 15,000 shares of preferred stock at a market price of $25.50 each. The common stock is priced at $103.10 a share and there are 20,000 shares outstanding. What is the weight of the common equity (E/V) as it relates to the firm's weighted average cost of capital (WACC)? (Hint: E = market value of debt stock, V = firm value)

Select one:

a. 31.4 percent

b. 41.1 percent

c. 25.4 percent

d. 56.6 percent

e. 10.5 percent