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The following data pertains to Xena Corp. Xena Corp. Total Assets $21,249 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity:
The following data pertains to Xena Corp.
Xena Corp. | |
Total Assets | $21,249 |
Interest-Bearing Debt (market value) | $11,070 |
Average borrowing rate for debt | 10.2% |
Common Equity: |
|
Book Value | $5,535 |
Market Value | $23,247 |
Marginal Income Tax Rate | 19% |
Market Beta | 1.64 |
|
|
Using the information from the table, determine the weight on equity capital that should be used to calculate Xena's weighted-average cost of capital.
33.3% | ||
71.9% | ||
67.7% | ||
54.9% |
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