Bruner Breakfast Foods' (BBF) Balance Sheet Shows a Total of $20

Bruner Breakfast Foods' (BBF) balance sheet shows a total of $20 million long-term debt with a coupon rate of 8.00%.The yield to maturity on this debt is 10.00%,and the debt has a total current market value of $18 million.The balance sheet also shows that that the company has 10 million shares of stock,and total of common equity (common stock plus retained earnings) is $30 million.The current stock price is $4.50 per share,and stockholders' required rate of return,r_s,is 12.25%.The company recently decided that its target capital structure should have 50% debt,with the balance being common equity.The tax rate is 40%.Calculate WACCs based on target,book,and market value capital structures,and then find the sum of these three WACCs.

A) 27.04%
B) 28.17%
C) 29.34%
D) 30.51%