You have been assigned to calculate the Weighted$-$Average$-$Cost$-$of$-$Capital for your firm, which has two sources of long$-$term capital. The company's marginal tax rate is $25\%.$

First, there are $207,500$ shares of common stock, which are currently selling for $$39\mathrm{.}93.$ You estimate that the firm's Beta is $0\mathrm{.}75.$ The current return on short$-$term T$-$Bill is $2\mathrm{.}25\%,$ and you expect the long$-$term return on the stock market to be about $9\mathrm{.}75\%.$

Second, there is an issue of $4,500$ coupon bonds with a face value of $$1,000,$ which pays $5\mathrm{.}10\%($annual$)$ coupons, and mature in fourteen years. These bonds are currently trading for $$950.$

What is the weight of the firm's assets held by the stock holders.

$62\mathrm{.}65\%$

$67\mathrm{.}10\%$

$65\mathrm{.}96\%$

$75\mathrm{.}09\%$