Sharpes Electronic Store has 825,000 shares of common stock outstanding with a market price of $40 a share. The company also has 65,000 bonds outstanding that are quoted at 106% of face value. When the weighted average cost of capital is calculated, what weight should be given to the equity?

Select one:

a. 53%

b. 68%

c. 32%

d. 29%

e. 47%