The following data pertains to Zonk Corp., a manufacturer of ball bearings (dollar amounts in millions):...

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The following data pertains to Zonk Corp., a manufacturer of ball bearings (dollar amounts in millions): Total assets $7460 Interest-bearing debt $3652 Average pre-tax borrowing cost 10.5% Common equity: Book value $2950 Market value $13685 Income tax rate 35% Market equity beta 1.13 Determine the weight on equity capital that should be used to calculate Zonk's weighted-average cost of capital: A 79.00% B 78.3% 41.8% 50% The following data pertains to Zonk Corp., a manufacturer of ball bearings (dollar amounts in millions): Total assets $7460 Interest-bearing debt $3652 Average pre-tax borrowing cost 10.5% Common equity: Book value $2950 Market value $13685 Income tax rate 35% Market equity beta 1.13 Determine the weight on equity capital that should be used to calculate Zonk's weighted-average cost of capital: A 79.00% B 78.3% 41.8% 50%