Figs,Dates and Other Things (FDT)has the Following Cost of Capital

question 54

Multiple Choice

Figs,Dates and Other Things (FDT) has the following cost of capital structure: $$\begin{array} { | l | c | c | } \hline & \text { Weight } & \text { Cost } \\\hline \text { Debt } & 45 \% & 4.50 \% \\\hline \text { Preferred Shares } & 10 \% & 5.80 \% \\\hline \text { Equity } & 45 \% & 9.20 \% \\\hline\end{array}$$ What is FDT's WACC?

• A) 6.50%
• B) 5.00%
• C) 7.50%
• D) 6.75%

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