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Krogers capital structure consists of $60,000,000 face value of debt and 5,000,000 shares of outstanding common stock. The bonds mature in 15 years, the yield

Krogers capital structure consists of $60,000,000 face value of debt and 5,000,000 shares of outstanding common stock. The bonds mature in 15 years, the yield to maturity is 6.10%, and the market price quote is 103. The market price of the stock is $15.01 per share. Krogers tax rate is 30% and the required return on equity for the firm is 9.8%. What is Krogers market value capital structure?

A.

62.3% Debt; 37.7% Equity

B.

32.1% Debt; 67.9% Equity

C.

37.7% Debt; 62.3% Equity

D.

45.2% Debt; 54.8% Equity

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