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FGH company has a current share price of $44 and a total of 19 million shares outstanding. The company currently has debt with a total

FGH company has a current share price of $44 and a total of 19 million shares outstanding. The company currently has debt with a total present value of $885 million. These outstanding bonds are currently priced to yield 4.9% while quoting at 88.5% of total face value. The company recently paid a dividend to common stock holders of $4.08 and anticipates growing the dividend at a constant rate of 6% per year indefinitely. If the corporate tax rate is 30%, what is the weight(percent) of equity of FGH Company?

The correct answer is one of the options below:

48.58%

46.78%

49.48%

50.38%

51.42%

47.68%

45.88%

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