ustthe tollowing information to answer Q16-020 Sea Shell Industries has 50 million shares of common stock outstanding, 10 preferred stock outstanding, and 100 thousand 8% coupon bonds that will ma The common shares are selling for $19 per share. Beta of the company's common 1.2. The preferred shares are selling for $8.50 per share, and paying S0.8 preferr per sh The company is subject to a 35% corporate income tax rate. Assume a risk f and a market risk premium of 6%. stock ed divide are. The bonds are selling for 97 percent of par (par value is $1000 per unit of bond ree rate of 5% 16. What would be the weights used in the calculation of Sea Shell's WACC for common stock, preferred stock, and bonds, respectively? Hint: use market values. A. 33.33%, 33.33%, 33.33% B. 83.19%, 16.64%, 0.17% C. 15.26%, 6.83%, 77.91% D. 83.92%, 7.51%, 8.57% 17. What is the after-tax cost of debt (assume semi-annual coupon payment). A. 4.18% B. 5.43% C. 8% D. 8.35% 18. What is the cost of preferred stock? A. 7.5% B. 8% C. 9.41% D. 10.5% 19. What is the cost of common equity based on the CAPM model? A. 6% B. 10.5% C. 11.5% D. 12.2% 20. What is the WACC of the company? A. 10.42% B. 11.41% . 13.75% D. 13.98%