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Zonk Corp. The following data pertains to Zonk Corp., a manufacturer of ball bearings (dollar amounts in millions): $7,460 $3,652 10.5% Total assets Interest-bearing debt

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Zonk Corp. The following data pertains to Zonk Corp., a manufacturer of ball bearings (dollar amounts in millions): $7,460 $3,652 10.5% Total assets Interest-bearing debt Average pre-tax borrowing cost Common equity: Book value Market value Income tax rate Market equity beta $2,950 $13,685 35% 1.13 Determine the weight on equity capital that should be used to calculate Zonk's weighted average cost of capital. 0 79.00% O 78.3% O 41.8% O 50%

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