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Danny Market issues only common stock and coupon bonds. The firm has a debt-equity ratio of .48. The cost of equity is 9 percent and

Danny Market issues only common stock and coupon bonds. The firm has a debt-equity ratio of .48. The cost of equity is 9 percent and the pre-tax cost of debt is 7.5 percent. The tax rate is 34 percent. What is the capital structure weight of the firms debt?

A. 21.40%

B. 48.00%

C. 28.09%

D. 32.43%

E. 37.14%

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