The beta for Disneys stock that is estimated using the data over the past 5 years is 1.0013. The Treasury bond rate and the estimated market risk premium are 2.75%, and 5.76%, respectively. Disneys bond rating in May 2014 was A, and based on this rating, the estimated pre-tax cost of debt for Disney is 3.75%. Disney is subject to corporate tax rate of 36.1%, and the current market values of equity and debt are $121,878 and $15,961, respectively. Which of the following is closest to Disneys WACC?

The beta for Disney's stock that is estimated using the data over the past 5 years is 1.0013. The Treasury bond rate and the estimated market risk premium are 2.75%, and 5.76%, respectively. Disney's bond rating in May 2014 was A, and based on this rating, the estimated pre-tax cost of debt for Disney is 3.75%. Disney is subject to corporate tax rate of 36.1%, and the current market values of equity and debt are $121,878 and $15,961, respectively. Which of the following is closest to Disney's WACC? (a) 7% p.a. (b) 8% p.a. (c) 9% p.a. (d) 10% p.a. (e) 8.52% p.a