Budpet Wings Aurlines is considering upgrading its floet of aircraf as it expends trom a regional airline to one otliering service to a more nationwide porthlio of caties and aiports. In support of this process, the CFO has asked you to deSermine the approprialo woighted average cost of capital (WACC) to use in the discounted cash tlow analysls. You spond the moming gathering the Aolowing information: - Budget Wings has dobt outstanding wth a market value of $170 milion. This debt is in the form of bonds that are currently priced at 504633 per 51,000 tace value and pay a coupon of 3.45%. The cierent yieldto- maturty (YTM) on these bonds is 4.11%. - Budget Wings stock in currenty priced at 551.05 per thare. You expoct that next year's dividend will be 53.81 and you expect dividends so grow at 4%. The cument market value of Budget Wings' common equity is $220 mition. - Budget Wings hae proferred equily outstanding with a market value of 530 million that oflers an annual dividend of 52.91 and is peiced at 548.50 per chare. - Budget Wings pays corporate taxes at a mate of 35%. Based upon this information; Budget Wings' curtent woighted average cost of capital (WACC) is closent to which of the followng? A. 2013% 11. 7.83% c. 7.14% 0. 7.51% E. 5.42%