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You have been assigned to calculate the Weighted-Average-Cost-of-Capital (WACC) for your small firm. The company has three sources of long-term capital. Its marginal tax rate

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You have been assigned to calculate the Weighted-Average-Cost-of-Capital (WACC) for your small firm. The company has three sources of long-term capital. Its marginal tax rate is 24%. First, there are 2,564,000 shares of common stock outstanding, which are currently trading at $37.51 per share. Recently, your firm announced Earnings per Share (EPS) of $3.42. You expect earnings to grow at 1.55% per year indefinitely. Second, the firm has 211,500 shares of preferred stock outstanding that pay annual dividends of $9.00 per share. These securities are selling for $103.47 per share. Third, there is an issue of 38,500 coupon bonds outstanding. These bonds have a face value of $1,000, mature in seventeen years, and pay 5.74% annual coupons. These instruments are currently trading for $1,054.23. Based on the data provided, estimate the firm's Weighted-Average-Cost-of-Capital (WACC). 11.03% O 8.77% O 8.49% O 4.52% O 9.10%

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