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Gerudo Inc. hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The company's noncallable bonds mature in

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Gerudo Inc. hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The company's noncallable bonds mature in 20 years, have a coupon rate of 8.00% paid annually, a par value of $1,000, and a current market price of $925. (2) The company's tax rate is 21%. (3) The required rate of return on the company's common stock based on CAPM is 7.7%. (4) The target capital structure consists of 30% debt, with the remainder comprised of common equity. What is its WACC? O 8.03% 6.73% O 5.95% 7.18% O 7.48%

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