Spacetech is an all equity company with common and preferred shares. There are 250,000 common shares outstanding. Currently the common shares have a price of $50 per share and have consistently provided a $2 per share dividend. There are 50,000 5% preferred shares outstanding, with a stock price of $90 per share. Given this information, calculated the company's WACC.
A) 8.60%
B) 7.59%
C) 6.48%
D) 5.37%
E) 4.26%
Correct Answer:
Verified
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