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

	"Target capital structure: 33% debt, 8% preferred stock and 59% common equity. Yield to maturity on bonds: 7.9%; Preferred stock dividend: $7.24 per year; current market price of preferred stock is $69.74. CAPM data for common equity: risk-free rate is 3.9%; market risk premium for the average stock is 6.0%; ABC has a beta of 1.61. ABC's marginal tax rate is 40%."
-	"Target capital structure: 34% debt, 8% preferred stock and 58% common equity. Yield to maturity on bonds: 7.0%; Preferred stock dividend: $7.43 per year; current market price of preferred stock is $69.93. CAPM data for common equity: risk-free rate is 4.2%; market risk premium for the average stock is 5.9%; ABC has a beta of 1.64. ABC's marginal tax rate is 40%."
- . . .	"Target capital structure: 32% debt, 14% preferred stock and 54% common equity. Yield to maturity on bonds: 7.5%; Preferred stock dividend: $7.83 per year; current market price of preferred stock is $70.33. CAPM data for common equity: risk-free rate is 4.2%; market risk premium for the average stock is 15.1%; ABC has a beta of 0.68. ABC's marginal tax rate is 40%."
	"Target capital structure: 34% debt, 7% preferred stock and 59% common equity. Yield to maturity on bonds: 8.5%; 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 4.7%; market risk premium for the average stock is 4.0%; ABC has a beta of 2.27. ABC's marginal tax rate is 40%."
	"Target capital structure: 36% debt, 11% preferred stock and 53% common equity. Yield to maturity on bonds: 6.3%; Preferred stock dividend: $7.59 per year; current market price of preferred stock is $70.09. CAPM data for common equity: risk-free rate is 4.2%; market risk premium for the average stock is 7.6%; ABC has a beta of 1.30. ABC's marginal tax rate is 40%."

A.	10.40%
B.	10.01%
C.	10.33%
D.	10.60%
E.	10.81%