#10

You were hireds as a consultant to Quigley Company, whose target capital structure is 35\% debt, 100 . preferred, and 55% common equity. The interest rate on new debt is 6.50%. the vield on the preferred is 6.00%, the cost of retained eamings is 10.50%, and the tax rate is 25%. The firm will not be issuing any new stock. What is quigley's wacc? Round final answer to two decimal places. Do not round your intermediate calculabions: a. 9.37% b. 6.73% E. 6.97% d. 8.08% B. 6.11%