Question 17 Not yet saved A firm's ordinary shares are trading for $20. The next dividend is $2.20 and is expected to grow by 3% in perpetuity. The firm has issued 10 year annual coupon bonds at a semi-annual yield of 6% pa and a coupon rate of 7% pa. The debt-to-equity ratio is 2:1. The corporate tax rate is 30%. What is the firm's after-tax WACC as an effective annual rate? Assume a classical tax system. Marked out of 1.00 P Flag question a. 8.7267% b. 7.5087% c. 9.1315% O d. 8.6667% e. 6.6667%