Weighted Average Cost of Capital [WACC} Questions 20 through 26 refer to the following date for Roadrunner Enterprises. This same information will apply for Questions 20-27: Use the information below to calculate the Weighted Average Cost of Capital [WACC] for Roadrunner Enterpris The company has the following components of its capital structure: DEBT: 22,750 bonds outstanding with a 6.5% coupon rate, paid annually. Each bond has $1,000 par value with a 30-year stated maturity, and were issued five years ago. The bonds currently sell for 85% of par in the market. PREFERRED STOCK: There are 29,400 shares of preferred stock outstanding. The shares sell for $82.31 in the market. They pay an annual cash dividend of $8.85 per share. COMMON STOCK: There are 355,000 shares of common stock outstanding. The shares sell for $83.25 in the market and pay an annual cash dividend of $2.35 per share. The stock has a beta of 1.53. >>> The company has a corporate tax rate of 30%. The expected return of the "Market"; that is, the S&P500 is 10.12% per year. T-bills are expected to return 3.58% per year. >>> Please refer to the capital structure for Roadrunner Enterprises. Q21: What's the weight of preferred stock in the capital structure? Select one: a. 20% to 30% b. 70% to 80% c. 90% to 100% d. 50% to 60% e. 80% to 90% 60% to 70% g. 0% to 10% h. 40% to 50% i. 30% to 40% j. 10% to 20%