Question 47 2 points Saun There are three (3) consecutive problems that use the information below. Assume that you have been hired as a consultant by CGT, a major producer of cherrricals and plastics, including plastic grocery bags, Styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other Information are provided below. Assets Current assets $ 28,000,000 Net plant, property, and equipment 101,000,000 Total assets $139,000,000 Liabilities and Equity $10,000,000 Accounts payable Accruals 9,000,000 Current liabilities 19,000,000 40,000,000 Long-term debt (410,000 bonds, $1,000 par value] Total abilities $ 59,000,000 Common stock (10,000,000 shares) 30,000,000 Heluined earnings Total shareholders' equity 50,000,000 90,000,000 Total llabilities and shareholders' equity $139.000.000 Market value of CGT's stock - $15.25 per share CGT has $1,000 par value, 20-year 7.250 coupon bonds with semiannual payments, selling for $475.00 CGT's stock beta-1.25 6-month Treasury bill yield - 2.50N . 20-year Treasury bond yield -5.504 Required return on S&P 500-11.50 The firm's tax rate is 40%. Which of the following is the best estimate for the weight of debt for use in calculating the CGT'S WACC? 18.67% 22.9594 50.00% 50.7494