Question 3 (1.5 points) D (Number has been changed) Patton Paints Corporation has a target capital structure of 60% debt and 40% common equity, with no preferred stock. Its before-tax cost of debt is 12%, and its marginal tax rate is 40%. The current stock price is P $22.50. The last dividend was Do = $2.00, and it is expected to grow at a 7% constant rate, what is its WACC? A) 11.68% B) 10.68% C) 11.28% D) 10.38% E) 10.92% Save