Initech Has 7 Million Shares of Common Stock Outstanding and 50,000

Initech has 7 million shares of common stock outstanding and 50,000 bonds outstanding.The bonds pay semi-annual coupons at an annual rate of 9.05%,have 6 years to maturity and a face value of $1,000 each.The common stock currently sells for $30 a share and has a beta of 1.The bonds sell for 94% of face value and have a 10.42% yield to maturity.The market risk premium is 5.5%,T-bills are yielding 5% and the tax rate is 30%.What is the firm's capital structure weight for debt?

A) 18.3%
B) 19.3%
C) 20.3%
D) 21.3%
E) 22.3%