Golding enterprises has 50,000 shares outstanding, of which 20% are preferred shares and 80% are common shares. The preferred shares pay $2.00 per year in dividends and are priced at $40 per share. The last dividend paid to common stockholders was 5$ per share and the company experts to grow at 2% forever. The current price of the common stock is $80. The company currently has no long term debt. Make sure you carry enough decimals when you do your calculation.

What is the WACC of Golding Enterprises?

A. 3.0%

B. 5.0%

C. 6.0%

D. 7.0%

E. 8.0%