Deep Mines has 43,800 shares of common stock outstanding with a beta of 1.54 and a market price of $51 a share. The 8 percent semiannual bonds have a face value of $1,000 and are selling at 96 percent of par. There are 2,000 bonds outstanding that mature in 13 years. The expected rate of return on the market is 7.5 percent, T-bills are yielding 3.6 percent, and the tax rate is 21 percent.

What weight should be assigned to the common stock when computing the weighted average cost of capital?

Group of answer choices

51.77 percent

38.54 percent

46.22 percent

53.78 percent

32.95 percent