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The following data pertains to Xena Corp.: Xena Corp. Total Assets $23,610 Interest-Bearing Debt...

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Accounting

The following data pertains to Xena Corp.:

Xena Corp. Total Assets $23,610 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity: Book Value $ 6,150 Market Value $25,830 Marginal Income Tax Rate 37% Market Beta 1.73

Determine the weight on equity capital that should be used to calculate Xena's weighted-average cost of capital. Select one: A. 70.0% B. 38.7% C. 24.0% D. 73.8%

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