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A company has a required return on equity of 16%, a yield to maturity of 6% on their bonds, and a tax rate of 35%.

A company has a required return on equity of 16%, a yield to maturity of 6% on their bonds, and a tax rate of 35%. If the companys WACC is 12%, what is the weight of bonds in the companys capital structure?

Select one:

a. 75%

b. 50%

c. 33%

d. 67%

e. 28%

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