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A firm's capital structure for its common stock, preferred stock and debt (bond) is 20%,40% and 40% respectively. The firm's beta is 1 . The

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A firm's capital structure for its common stock, preferred stock and debt (bond) is 20%,40% and 40% respectively. The firm's beta is 1 . The risk free rate is 2% and the market risk premium is 5%. The firm recently paid a $4.32 prefered stock dividend per share while its price is $95 per share. The firm's 4.25% coupon bond issue trades at par and matures in 25 years. The firm's tax rate is 21%. What is the Weighted Average Cost of Capital? Multiple Choice 4.56% 4.47\% 4.92% 4.25%

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