What should be proportion of common equity financing (Ws) in WACC computations for a firm with $50 million par value in bonds (debt) but these 4 years bonds with coupon rate 3% has a yield to maturity at 7.476%. The firm also has $50 million book value of equity but its stock price is selling at $57.50 per share and there are one million shares of stock outstanding? Tax rate is 35%.

• A. 70.2%
• B. 42.5%
• C. 57.5%
• D. 60.5%
• E. 29.8%