Wave Shredder Inc. has a capital structure consisting solely of debt and common equity. The firm has a beta of 1.5. The market portfolio return is expected to be 15%, and the current risk-free rate is 6%. They can issue debt at 11% before taxes, while the tax rate is 35% and WACC is 13.95%. What percentage (weight) of the companys capital structure consists of debt?

A. 27.07 percent

B. 37.67 percent

C. 38.52 percent

D. 44.94 percent

E. 50.01 percent