udget Wings Airlines is considering upgrading its fleet of aircraft as it expands from a regional airline to one offering service to a more nationwide portfolio of cities and airports. In support of mis process the CFO has asked you to determine the appropriate weighted average cost of capital (WACC) to use in the discounted cash flow analysis. You spend the morning gathering he following information: - Budget Wings hon debt outstanding with a market value of $170 million. This debt is in the form of bonds that are currently priced at $946.33 per $1,000 face value and pay a coupon of 345%. The current yield-to-maturity (YTM) on these bonds is 4 11%. - Budget Wings tock is currently priced at $$1.29 per share You expect that next year's dividend will be $3.81 and you expect dividends to grow at 6%. The current market value of Budget Wings' common equity is $220 million - Budget Wings han profoired equity outstanding with a market value of 830 million that offers an annual dividend of $2.91 and is priced at $48.50 per share - Budget Wings pays corporate taken at a rate of 36% Baned upon this information, Budget Winge current weighted average cost of capital (WACC) is close to which of the following? OA 5.40% OB. 8.02% OC 21.10% OD 7.64% OE 34% Click to select your ne