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WACC calculation 2. Assume that you are on the financial staff of Bickum Enterprises, and...

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WACC calculation 2. Assume that you are on the financial staff of Bickum Enterprises, and you have collected the following data: (1) The yield to maturity on the company's outstanding 7% annual coupon bonds is 6%, and its tax rate is 25%. (2) The risk-free rate is 4%, the market risk premium (IM - TRE) is 5%, and the firm's beta is 0.90. (3) The firm's capital structure consists of 45% debt and 55% equity. What is Bickum's WACC? a. 6.30% b. 6.70% c. 7.38% d. 7.83% e. 8.50%

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