1. Calculate the WACC for EZjET assuming the following information.
   1. The airline has debt outstanding at $1.1 billion and LIBOR is + 2.75 percent.
   2. The airline has 20 million shares of preferred stock currently outstanding, which is trading at $10 per share and pays an annual dividend of $0.80 per share.
   3. The airline has 300 million shares of common stock outstanding, which is currently trading at $2 per share, paying an annual dividend of $0.10 per share, and is expected to grow at a rate of 12 percent for the foreseeable future, and the current LIBOR rate is 3 percent.
   4. The airline does not expect to earn a profit for the year; therefore, it will have no retained earnings. The airlines marginal tax rate, when profitable, is 40 percent.