The following data pertains to Xena Corp.:

Xena Corp.

Total Assets

$23,610

Interest-Bearing Debt (market value)

$11,070

Average borrowing rate for debt

10.2%

Common Equity:

Book Value

$ 6,150

Market Value

$25,830

Marginal Income Tax Rate

37%

Market Beta

1.73

Determine the weight on debt capital that should be used to calculate Xena's weighted-average cost of capital.

Select one:

A.50.0%

B.30.0%

C.26.2%

D.61.3%