A firms WACC is 19%, its required return on equity is 23%, and its after-tax cost of debt (i.e.,

effective cost after tax deductions) is 6%. What proportion of the firms capital structure is debt, and

what proportion is equity?

a. 44.9% debt, 70.9% equity

b. 80.5% debt, 24.1% equity

c. 51.5% debt, 48.5% equity

d. 19.1% debt, 80.9% equity

e. 23.5% debt, 76.5% equity