Jefferson Enterprises Has 700,000 Shares of Common Stock Outstanding at a Market

Jefferson Enterprises has 700,000 shares of common stock outstanding at a market price of $18 a share. The company also has 20,000 bonds outstanding that are quoted at 104 percent of face
Value. What weight should be given to the debt when Jefferson Enterprises computes their
Weighted average cost of capital?

A) 31 percent
B) 38 percent
C) 50 percent
D) 62 percent
E) 69 percent