Marie Corp. has $1500 in debt outstanding and $2800 in common stock (and no preferred stock). Its marginal tax rate is 40%. Marie's bonds have a YTM of 7.00%. The current stock price (Po) is $40. Next year's dividend is expected to be $2.60, and it is expected to grow at a constant rate of 5% per year forever.
A. The company's W.A.C.C. is ____%.