Liabilities & Equit Assets (in Millions) Current Net Fixed $100 $100 Bonds ($1000 Par) 100 Preferred Stock ($100 Par) 50 Common Stock ($1 par 50 Total $200 Total $200 The company has some bonds outstanding with coupon rate of 10% and semi-annual payments: the bonds currently self 5047 The maturity of those bonds is 10 years, The company's applicable tax rate is 30%. The preferred stocks pay quarterly dividend of $2.25 and their market price is $65.25. The dividends of the common stocks of this company have been growing steadily at 4% per year, and this growth rate is expected to continue in the future. Last year's dividend was $1.15. The floatation cost for new common stocks is 10%. The floatation cost on preferred stock is 5% the market value of the common stock is $9.5 Assume the company is going to issue new preferred stocks and new common stocks. What is the WACC using the market weights? 18.52% 19.67% 12.45% 13.87% 16.16%