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Kroger's capital structure consists of $70,000,000 face value of debt and 5,000,000 shares of outstanding common stock. The bonds mature in 15 years, the yield

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Kroger's capital structure consists of $70,000,000 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 102.16. The market price of the stock is $29.65 per share. Kroger's tax rate is 30% and the required return on equity for the firm is 9.8%. What is Kroger's market value capital structure? A. 62.3% Debt; 37.7% Equity B. 45.2% Debt; 54.8% Equity C. 32.5% Debt; 67.5% Equity D. 37.3% Debt; 62.7% Equity

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