Trust S.A. is an Italian Telecom corporation that wants to expand its business internationally. It will open a new branch either in Germany or in France. Regardless of where it will be opened, the new branch will require a capital of 1,500,000. Bank of Madrid has agreed to loan Trust S.A. 600,000 at 8% before tax interest rate. Knowing that taxes are paid at 40% each year. . Moreover, Trust S.A. expects that it could raise 450,000 by issuing new preferred shares at a price of 50 per share, and the annual report showed that preferred stocks pays an annual dividend of 2.5. Trust S.A. provides the remaining required capital from retained earnings. Common stock that is currently selling at 60 per share and current dividend of 3.25, which would increase by an annual constant growth rate of 5%. 7. Based on the information provided, Trust S.A's weighted average cost of capital is closest to: A) 5%. O B) 4.8% C) 6.6%. O D) 10.6% OE) None of the above