QUESTION 13 As a New Hire with the ABC Corp. you have been asked to recommend an appropriate Discount Rate (DR) for all capital Budgeting Projects, using the following formula: DR - WACC +1.5% You have collected the following Data to calculate the Appropriate WACC: NOTE: ABC is the 21%. Marginal Tit Bracket (MTB) Total Mkt Value of ABC - 51.20 billions SECURITY Weight REMARKS 1 BONDS 40% 8% Bond with Remaining Maturity of 15 yrs. Mkt Price 110 per Bond 2 Pt Stocks 10% PPS$67.00, Div per yr $6.00 3 CS 50% PPS = $92.00, Div = $ 4.50 per yr. Div Growth Rate (g) - 5% CS - Commen Share: PPS - Price per share and Pr - Preferred Based on your calculations, you are recommending a DR on OG 8.6% b. 7.9% 09.3% Od 12.5% O 11.2% Ot 10.0%