Show work on step by step solution

Use the information to answer the following questions. The XXX Company has a marginal tax rate of 40%. The company can issue new bonds at par that would provide a 13% YTM. The firm's beta is 1.4, the T-bill rate is 5%, and the market return is 12%. The firm's long-term debt currently sells at par value for $1,500. The firm has 350 shares of common stock outstanding that sell for $10 per share. . . What is XXX's capital structure based on market weights? Select one: a. 50% in debt, 50% in equity. O b. 70% in debt, 30% in equity. O c. 30% in debt, 70% in equity. d. 60% in debt, 40% in equity. e. 40% in debt, 60% in equity