Consider a company with 2 million shares of common stock outstanding. The stock's par value is $1.00 per share and the company's shares currently trade for $5.00 per share. The company also has debt with a par value of $2 million. The debt has exactly 15 years remaining until maturity and a coupon rate of 10% paid semiannually. The yield to maturity on the bonds is 12%. What is the weight of debt capital to be used in calculating the firm's weighted average cost of capital (WACC)? O 14.71%. O 15.30%. O 46.30%. O 50.00%.

Consider a company with 2 million shares of common stock outstanding. The stock's par value is $1.00 per share and the company's shares currently trade for $5.00 per share. The company also has debt with a par value of $2 million. The debt has exactly 15 years remaining until maturity and a coupon rate of 10% paid semiannually. The yield to maturity on the bonds is 12% What is the weight of debt copital to be used in calculating the firm's weighted average cost of capital (WACC)? 14.71X 15.30% 46.30% 50.00%