2526 Thatcher St

Wilmington, DE 19802

you were hired as a consultant to Vasudevan inc, whose target capital structure is 20% debt, 35% preferred, and 45% common equity. the after-tax cost of debt is 5.00%, that cost of preferred is 8.50%, and the cost of equity is 13.00%. Vasudevan inc. will not be issuing any new stock. what is it's WACC? A.) 9.83% B.)3.28% C.)8.83% D.) none of these E.) 26.50%