16. Your company is capitalized as follows: Bank loan of $4B at a 12% annual effective interest rate; Preferred Stock of $1 B at a 14% annual dividend rate; ales Common Stock with a market cap of $3B. vap 3D. You estimate your shareholder's Ke (cost of equity or required rate of return) is 16%. Your effective tax rate is 40%. What is your after-tax WACC? A) 13.75% B) 0.95% C) 8.25% D) 10.65% E) 11.35% 150000 100000 50000 OR NPV 1 2 3 X 5 6 7 8 9 10 -50000 -100000 -150000 -200000 Discount Rate