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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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