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The following information was taken from the last balance sheet of Sustainable Green Company: - Long-term bonds (10-year maturity, annual interest with a 6% coupon

The following information was taken from the last balance sheet of Sustainable Green Company": - Long-term bonds (10-year maturity, annual interest with a 6% coupon rate): $300,000; - Common stock (200,000 shares, par value $1): $200,000; - Retained earnings: $150,000. Regarding the market value of debt, it is known that similar bonds (that is, bonds with the same maturity and the same kind of risk) are being issued at 7%. Regarding the market value of equity, consider that the actual price of the companys stocks is $8.

Select one:

A. The weight of equity, using book values, is 45%.

B. The weight of equity, using market values, is 72%.

C. The weight of debt, using market values, is 14.845%.

D. The weight of debt, using book values, is 57%.

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