Assume JUP has debt with a book value of

$22

million, trading at 120% of par value. The firm has book equity of

$27

million, and 2 million shares trading at

$18

per share. What weights should JUP use in calculating its WACC?

A.

29.62%

for debt,

70.38%

for equity

B.

38.08%

for debt,

61.92%

for equity

C.

42.31%

for debt,

57.69%

for equity

D.

33.85%

for debt,

66.15%

for equity