Firm PooX has $2 million in outstanding long-term debt (face value), the current quote = $980, coupon rate of 9%, semiannual coupons, 10 years to maturity, and the tax rate = 40%. It also has short-term liabilities (6 months) with a market value of $500,000. If the current value of the equity is $1million with a book value of $1.5 million, what is the weight of the debt in the WACC calculations?

57.1%

66.2%

62.5%

71.1%

None of the above