The information below is for the next 5 questions: ABC Inc. has 2.8 million common shares outstanding. The companys common stock price from the balance sheet is $20 per share. The latest trading price for the common stock is $35 per share. The cost of common stock = 12%. The company has one issue of preferred stock, whose dividend yield is currently 7.67%. There are a total 0.5 million of preferred shares. Coupon rate = 7% and face value per share is $100. The company has also issued convertible bond, with a total face value of $15 million, a 12-year maturity, and a coupon rate of 7.8%. The convertible bond is currently trading at a total market value of $19 million. Before tax cost of debt = 7%. Tax rate = 0.4. 7. Calculate the market value ($m) of common shares. F. 56 G. 72 H. 98 8. Calculate the market value ($m) of preferred stock. A. 51.27 B. 45.63 C. 76.61 9. Calculate the market value ($m) of the straight debt component in the convertible bond. E. 15.95 F. 15.84 G. 19.02 H. 13.27 10. Assume that the answer to the above question (Q9) is $10 million. What is the market value ($m) of the stock option component in the convertible bond. E. 8 F. 9.4 G. 5.8 H. 9 11. Assume that the answer to Q7 = $5m (common stock), the answer to Q8 = $3m (preferred stock), the answer to Q9 = $10m (straight debt). What is the WACC of the company? A. 9.67% B. 7.80% C. 8.19% D. 8.63%

Please answer only question 11