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Exuma Inc.'s assets are financed with 72.0% equity and the rest in debt. Currently, its debt has a before-tax interest rate of 10.30%. Its stock

Exuma Inc.'s assets are financed with 72.0% equity and the rest in debt. Currently, its debt has a before-tax interest rate of 10.30%. Its stock trades at $46.90/share; the most recent dividend was $1.30/share and future dividends are expected to grow by 5.50% perpetually. If the tax rate is 45% what is its WACC? a. 7.65% b. 7.36% c. 6.77% d. 8.95% e. 6.44%

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