1. Prelevain is trying to decide whether to invest in a new line of business, selling premade bread in the freezer section at grocery stores, and wants to calculate their WACC. Assume that their capital structure consists of 58% common stock, 12% preferred stock, and 30% debt. Further, analysts predict that their future cost of debt will be 6% and their cost of preferred stock is 11%. We also know that the current price of common stock is $35 and that the common stock is expected to pay a $2.00 dividend each year. The firms tax rate is 20%. What is this firms WACC?

   	A.	6.07%
   	B.	22.71%
   	C.	None of these
   	D.	7.57%
   	E.	6.43%