A firm has 12,000 shares of stock outstanding that sell for $26 each. The book value of equity is $400,000. The firm has also issued a 5. year bond with a $250,000 par value and a 4% coupon rate. The yield to maturity of the bond is 4.5%. What value should be used as the weight of equity when computing WACC? (The bond pays coupon annually) O A 50% OB. 56% OC.63% D. 449 O E 674