A firm has a target capital structure that includes 30% debt, 20% preferred stock, and 50% common equity. The current YTM for bonds is 9%, expected returns on preferred stock is 11%, and common equity returns are 15%. Their tax rate is 25%.

Calculate WACC for this company.

10.37%

11.37%

11%

10%

Which of the following is NOT one way that management can alter their company's WACC?

		Choosing capital budget projects that are less risky
		Altering market interest rates
		Altering their target capital structure
		Altering their dividend strategy