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JKL has 5 million shares of common stock outstanding and 55,000 bonds outstanding. The bonds pay semi-annual coupons at an annual rate of 9.05%, have

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JKL has 5 million shares of common stock outstanding and 55,000 bonds outstanding. The bonds pay semi-annual coupons at an annual rate of 9.05%, have 6 years to maturity and a face value of $1,000 each. The common stock currently sells for $30 a share and has a beta of 1. The bonds sell for 94% of face value and have a 10.42% yield to maturity. The market risk premium is 5.5%, T-bills are yielding 5% and the tax rate is 30%. What is the firm's capital structure weight for debt? 81.70% 25.63% 74.37% O 18.3096 33.22%

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