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Qualcom Inc. has 2000, 6%, semi-annual bonds maturing in 14 years, outstanding currently trading at $1,243. It has 2,000,000 shares outstanding currently trading at $12

Qualcom Inc. has 2000, 6%, semi-annual bonds maturing in 14 years, outstanding currently trading at $1,243. It has 2,000,000 shares outstanding currently trading at $12 per share. The last dividend on the common shares was $1.20 and is expected to grow at 6% annually. The tax rate is 35%. Calculate the WACC for Qualcom?

A.

17.57%

B.

15.27%

C.

14.44%

D.

16.60%

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