Lululemon Athletica Has a Current Share Price of $52

Multiple Choice

Lululemon Athletica has a current share price of $52.50,and a market capitalization of $7 billion.The company is expected to pay a dividend of $0.20 per share,with a dividend growth rate of 3% per year.The firm has $4 billion of debt with a yield to maturity of 7%.If the firm's tax rate is 25%,what is Lululemon's WACC?

A) 4.07%
B) 4.33%
C) 3.82%
D) 4.71%
E) 3.94%