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Darlington has 80.000 bords selling at par and yielding 6.75%. its 7 preferred stocks number is 750.000 and there are two and one half million

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Darlington has 80.000 bords selling at par and yielding 6.75%. its 7 preferred stocks number is 750.000 and there are two and one half million common stocks. The prices of the preferred and common stocks are $53 and 942 respectively per share The beta of the common stock is 1.34. Treasury bill is yielding 2.8% and the return on the market is 11.2%. Given a tax rate of 38%. What is Carlingtons WACO? Select one: a 10.28% b. 10.39% 10.52% d. 11.41% e. 11 65%

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