Target % in Capital Structure Component Cost(pre-tax) Component Cost(after-tax) Weighted Component Cost

Debt 35.00%

Preferred Stock 2.00%

Equity 63.00%

Tax Rate = 35.00% WACC =

Outstanding Bond Preferred Stock Info Common Stock Info

(AnnualCoupons) Preferred Divided 3 Current Dividend $2.00

Time to Maturity (years) 10 Current Market Price 50 Current Price $81.00

Coupon Rate APR 6.00% Preferred Yield 6.00% Expected Growth in Dividends 3.00%

Face Value $1,000.00 Expected Return on Equity 5.54%

Current Market Price $975.00

YTM 6.35%

Based on the information in the table, what is the WACC?

Group of answer choices

5.31%

5.05%

5.16%

4.80%