Jabila Corporation is an all equity company with common and preferred shares. There are 600,000 common shares outstanding. Currently the common shares have a price of $15 per share and have consistently provided a $3 per share dividend. There are 75,000 8% preferred shares outstanding, with a stock price of $100 per share. Given this information, calculated the company's WACC.
A) 12.35%
B) 13.45%
C) 14.55%
D) 15.65%
E) 17.75%
Correct Answer:
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