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QUESTION 4 Choose the correct answer from the choices provided for the question and enter it into the answering space below: Centex Corporation is considering

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QUESTION 4 Choose the correct answer from the choices provided for the question and enter it into the answering space below: Centex Corporation is considering an investment project and has the following information. 10,000 bonds outstanding, 7% coupon rate, $1,000 par value, 15 years to maturity, selling for 98 percent of par; the bonds make semi-annual coupon payments. 200,000 common shares outstanding, selling for $45 per share the beta is 1.40. Market information: 7 percent market risk premium and 3 percent risk-free rate. Assume the company's tax rate is 25 percent. What is the company's cost of capital (WACC)? A. 9.55% B. 9.36% C. 9.14% D. 8.67% E. 8.95% F. 8.49%

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