Power Financial Corp Has a Current Share Price of $30,and

Multiple Choice

Power Financial Corp has a current share price of $30,and a market capitalization of $20 billion.The firm's beta is 0.93,the risk-free rate is 3.2%,and the market risk premium is 7%.The firm has $12 billion of debt with a yield to maturity of 5%.If the firm's tax rate is 20%,what is Power Financial's WACC?

A) 5.43%
B) 5.71%
C) 7.94%
D) 6.55%
E) 7.57%