Padgett Corporation estimates that it can issue debt at a rate of r _d = 8%, and its tax rate is 35 percent. It can issue preferred stock that pays a constant $5.50 dividend per year at a price of $61 per share. Also, its common stock currently sells for $38 per share, the next expected dividend (D ₁) is $2.28, and the dividend is expected to grow at a constant rate of 6 percent per year. The target capital structure consists of 60 percent common stock, 35 percent debt, and 5 percent preferred stock. What is Padgetts WACC?

	a.	10.45%
	b.	6.79%
	c.	9.69%
	d.	9.47%
	e.	5.87%