Rogers Communications Is Currently Financed with 60% Equity,20% Preferred Stock,and

Multiple Choice

Rogers Communications is currently financed with 60% equity,20% preferred stock,and 20% debt.It has a cost of equity capital of 8.5%,a cost of preferred stock of 6%,and its pretax cost of debt is 7%.If the firm has a tax rate of 25%,what is Rogers's WACC?

A) 7.04%
B) 6.58%
C) 7.17%
D) 7.7%
E) 7.35%