20) Poughkeepsie Woolens is considering a project to expand its warehousing. They have a target debt/equity ratio of 4. Their equity has a beta of 1.4. The risk-free rate is 1% and the market risk premium is 6%. They were able to issue new debt for their project with a 8% coupon rate, which sold at par upon issuance. If their tax rate is 20%, then their WACC is: A) 4.5% B) 5.0% C) 5.1% D) 6.6% E) 7.0% 4