rrojec

$$

nate or neturn

$\backslash$table$[[$A$,$$$1$ million,$12\mathrm{.}0\%$

$($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=$$$22\mathrm{.}50.$ The last dividend was $D_0=$$$2\mathrm{.}00,$ and it is expected to grow at a $7\%$ constant rate. What is its WACC?

A$)11\mathrm{.}28\%$

B$)10\mathrm{.}92\%$

C$)11\mathrm{.}68\%$

D$)10\mathrm{.}38\%$

E$)10\mathrm{.}68\%$