NR Industries has 150,000 shares of common stock outstanding. The stock is currently selling for $33.50 a share. The firm also has 2 bond issues outstanding. The first bond issue has a total face value of $2,500,000, pays 9.5 percent interest annually, and currently sells for $1,030. The second bond issue consists of 7,500 bonds that are selling for $960 each. These bonds pay 8 percent interest annually and mature in 11 years. The tax rate is 34 percent. What is the capital structure weight of the firm's common stock? (Hint: Assume each bond has face value of $1,000.)
a. 33.66 percent
b. 33.71 percent
c. 33.80 percent
d. 33.95 percent
e. 34.07 percent