For Bonds

Firm decides to issue debt that matures in $15$ years

Number of bonds it will issue $28,000$

Price bonds will sell for: $1,000$

Yield Curve $($already accounts for spread of Firm$-$To$-$Treasury$)$

YTM $10\mathrm{.}1\%$

$($&$)9\mathrm{.}0\%$

$7\mathrm{.}6\%$

$5\mathrm{.}9\%$

$4\mathrm{.}0\%$

$1\mathrm{.}8\%$

$125101520$

Years To Maturity

For Preferred Stock

Price of Preferred Stock $33\mathrm{.}99$

Dividend on Preferred $3\mathrm{.}91$

Number or preferred shares outstanding $11,900$

For Common Stock

Common price $22\mathrm{.}65$

Estimated growth rate in dividends $2\mathrm{.}90\%$

Estimated dividend in one year $2\mathrm{.}58$

$($Assume annual dividends$)$

Number of common shares outstanding $298,000$

Tax rate $38\mathrm{.}00\%$

What is WACC?

A Between $0\mathrm{.}0\%$ and $9\mathrm{.}0\%$

B Between $9\mathrm{.}0\%$ and $10\mathrm{.}0\%$

C Between $10\mathrm{.}0\%$ and $11\mathrm{.}0\%$

D Between $11\mathrm{.}0\%$ and $12\mathrm{.}0\%$