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What is the WACC for the firm below? Market risk premium = 9%, risk-free rate =...

What is the WACC for the firm below? Market risk premium = 9%, risk-free rate = 4%, marginal tax rate = 40% Bonds: 10,000 bonds outstanding, $1,000 face value each, 10% annual coupon, 15 years to maturity, market price = $1100 per bond Common Stock: 2 million shares outstanding, $50 per share, beta = 1.5

A. 16.30% B. 12.30% C. 14.30% D. 15.30% E. 11.30%

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