Zero Corporation has a market/book ratio equal to 2. Its stock price is $25 per share and it has 5.0 million shares outstanding. The firm's total capital is $135,000,000 and it finances with only debt and common equity. What is its debt-to-capital ratio? (Hint: 1. Total Invest Capital = Equity + Deb where both equity and debt are book values. 2. Market price per share x number of shares outstanding = Market Value of Equity. 3. You can find the Book value of equity using M/B ratio).

Options/Choose and answer:

46%

93%

54%

7%

Can you please show me how to work this problem?