Snow Flake Inc is currently all equity financed. The company decides to recapitalize to take advantage of the tax shield of debt. The firm's marginal tax rate is 30%. After a substantial borrowing, firms cost of equity goes up to 12%. Assuming that firms asset beta is 0.9, risk free rate is 2%, and EMRP is 5%, the companys post recapitalization debt to capital ratio is closest to:

Group of answer choices

64%

None of the answers is correct

36%

56%

175%