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 Enterprises. The company has the following components of its capital structure: DEBT: 12,750 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 $7.35 per share. COMMON STOCK: There are 335,000 shares of common stock outstanding. The shares sell for $93.25 in the market and pay an annual cash dividend of $2.35 per share. The stock has a beta of 1.23. >> 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. Q24: What is Roadrunner's cost of preferred stock? Select one: a. 16.0% to 18.0% b. 2.0% to 4.0% c. 4.0% to 6.0% d. 12.0% to 14.0% e. 8.0% to 10.0% f. 14.0% to 16.0% g. 10.0% to 12.0% h. 6.0% to 8.0% i. 0% to 2.0% j. More than 18.0% Q25: What is Roadrunner's cost of common stock? Select one: a. 12.0% to 14.0% b. 2.0% to 4.0% c. 10.0% to 12.0% d. 4.0% to 6.0% e. 8.0% to 10.0% f. More than 18.0% g. 14.0% to 16.0% h. 16.0% to 18.0% i. 0% to 2.0% j. 6.0% to 8.0% Q26: What is Roadrunner's Weighted Average Cost of Capital (WACC)? Select one: a. 8.0% to 10.0% b. 4.0% to 6.0% c. 6.0% to 8.0% d. 2.0% to 4.0% e. 10.0% to 12.0% f. 12.0% to 14.0% g. 0% to 2.0% h. More than 18.0% i. 14.0% to 16.0% j. 16.0% to 18.0%