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. >>> Q20: What's the weight of debt in the capital structure? Select one: a. 50% to 60% b. 70% to 80% c. O to 10% d. 60% to 70% e. 20% to 30% f. 80% to 90% g. 90% to 100% h. 40% to 50% i. 30% to 40% j. 10% to 20% Please refer to the capital structure for Roadrunner Enterprises. Q21: What's the weight of preferred stock in the capital structure? Select one: a. 70% to 80% b. 90% to 100% c. 0% to 10% d. 60% to 70% e. 20% to 30% f. 30% to 40% g. 40% to 50% h. 50% to 60% i. 10% to 20% j. 80% to 90% Please refer to the capital structure for Roadrunner Enterprises. Q22: What's the weight of common stock in the capital structure? Select one: a. 80% to 90% b. 70% to 80% c. 10% to 20% d. 60% to 70% e. 50% to 60% f. 30% to 40% g. 20% to 30% h. 905 to 100% i. 0% to 10% j. 40% to 50% Q23: What is Roadrunner's after-tax cost of debt? Select one: a. 0% to 1.0% b. 6.0% to 7.0% c. 7.0% to 8.0% d. 5.0% to 6.0% e. 2.0% to 3.0% f. 1.0% to 2.0% g. 4.0% to 5.0% h. 8.0% to 9.0% i. 3.0% to 4.0% j. More than 9.0%