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CFO has asked you to delemine the apprepriate woighted average cost of capital (WACC) to use in the dscounted cash flow analysis. You spend the

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CFO has asked you to delemine the apprepriate woighted average cost of capital (WACC) to use in the dscounted cash flow analysis. You spend the morning pathecing the following infomabor: - Budget Wros has debt oulstanding with a market value of $180 million. This debt is in the form of bonds that are currently priced at $946.33 per 51,000 fach value and pay a coupon of 3.45K. The curtent yield to-matiry (YTM) on these bonds is 4.11% - Budgot Wings slock a currently priced at 552.34 per share. You expect that next year's dividend wil be 53.64 and you expect dividonds to grow at 4%. The current market value of Budget Wingt' conmon equty is $210 million. - Budget Wings has prelerred equity cutstandrg wath a manet value of $30 milion that offers un annual diviend of $2.91 and is priced at 545.50 per share. - Budget Wings pars corporate taces at a note of 35% Based upon tha iformaton, Budget Whings curtent weighted average cott of capeal (WACC) is cloweut to which of the folowing? A. 7.36% 8. 6.65% C. 7.00% D. 505% e. 19.03%

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