17. The company's weighted average cost of capital is closest to: O A. 10.6% O 8.8.1% O c. 9.0% O D. 9.6% E. None of the above IE Pehme to search AM 06 TOSHIBA Use the following data to answer Question 17: Al-Khatib Machinery Inc. is planning to build a new warehouse in Beqaa region. Dr. Nassor, CFA, is estimating the WACC for the company. He prepares the following data for Al-Khatib Machinery Inc. - The company has an outstanding debt consisting of 20-year par value bonds with a semiannual coupon rate of 5%. The dividend is expected to grow at some constant rate g Price per share = $50. Expected dividend per share (01) = $3. Expected retention ratio (RR) = 30%. Expected return on equity = 20% Beta = 0.89 The expected market rate of return is 12% and the risk-free rate is 3% The firm's target capital structure consists of 40% debt and 60% equity. The firm's marginal tax rate is 40% Type here to search o 01" 400