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Bermuda Cruises issues only common stock and coupon bonds. The firm has a debtequity ratio of 1.33. The cost of equity is 13.1 percent and

Bermuda Cruises issues only common stock and coupon bonds. The firm has a debtequity ratio of 1.33. The cost of equity is 13.1 percent and the pretax cost of debt is 7.4 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 35 percent?

.5708

.5010

.4014

.4292

.4745

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