ABC Corporation has 9.6 million shares of common stock outstanding, 400,000 shares of 6 percent

preferred stock outstanding with face value of $100, and 210,000 bonds outstanding of 8.4 percent

semiannual with par value of $1,000 each. The common stock currently sells for $44 per share and has a

beta of 1.30, the preferred stock currently sells for $94 per share, and the bonds have 20 years to maturity

and sell for $1 150. The market risk premium is 8.4 percent, T-bills are yielding 4 percent, and the

company's tax rate is 40 percent.

10) What is the firm's market value capital structure?

A. Wa = 0.0536, W, = 0.3443 , W. =0.6021

B. Wa= 0.6021, W. =0.0536, Wa=0.3443

C. W. = 0.3443, Wp=0.0536, We =0.6021

D. Wa=0.3443, Wp = 0.6021 , We =0.0536

E. Wa =0.2443, Wp = 0.1536, W. =0.6021

14. What is the WACC?

A. 9.77%

B. 8.779

C. 7.77%

D. 10.77%

E. 6.77%