Match the Weighted Average Cost of Capital to each of the scenarios given for ABC Corporation.

-A.B.C.D.E.	Target capital structure: 51% debt, 12% preferred stock and 37% common equity. Yield to maturity on bonds: 9.0%; Preferred stock dividend: $6.57 per year; current market price of preferred stock is $69.07. CAPM data for common equity: risk-free rate is 3.5%; market risk premium for the average stock is 5.3%; ABC has a beta of 1.68. ABC's marginal tax rate is 40%.
-A.B.C.D.E.	Target capital structure: 46% debt, 8% preferred stock and 46% common equity. Yield to maturity on bonds: 8.7%; Preferred stock dividend: $7.40 per year; current market price of preferred stock is $69.90. CAPM data for common equity: risk-free rate is 3.3%; market risk premium for the average stock is 5.5%; ABC has a beta of 1.89. ABC's marginal tax rate is 40%.
-A.B.C.D.E.	Target capital structure: 50% debt, 8% preferred stock and 42% common equity. Yield to maturity on bonds: 8.0%; Preferred stock dividend: $7.64 per year; current market price of preferred stock is $70.14. CAPM data for common equity: risk-free rate is 4.7%; market risk premium for the average stock is 5.6%; ABC has a beta of 1.70. ABC's marginal tax rate is 40%.
-A.B.C.D.E.	Target capital structure: 36% debt, 15% preferred stock and 49% common equity. Yield to maturity on bonds: 4.7%; Preferred stock dividend: $6.90 per year; current market price of preferred stock is $69.40. CAPM data for common equity: risk-free rate is 4.7%; market risk premium for the average stock is 15.2%; ABC has a beta of 0.54. ABC's marginal tax rate is 40%.
-A.B.C.D.E.	Target capital structure: 51% debt, 6% preferred stock and 43% common equity. Yield to maturity on bonds: 7.2%; Preferred stock dividend: $7.38 per year; current market price of preferred stock is $69.88. CAPM data for common equity: risk-free rate is 3.2%; market risk premium for the average stock is 5.1%; ABC has a beta of 2.07. ABC's marginal tax rate is 40%.

A.	8.83%
B.	8.48%
C.	8.75%
D.	9.55%
E.	9.24%