QUESTION 15 Suppose that a firm has $500K in long term debt, $25K in preferred stock and $375K in common equity. These are market values Assume the yield on the long term debt is 5.6%, the tax rate is 22%, the dividend on the preferred stock is 4.75% and the firm has a market beta of 1.25. The risk free rate is 2.5% and the market risk premium is 6.31% Suppose the firm added $200K in debt and the yield on all the debt was 5.8%. If everything else remains the same, what is the new WACC? OA 5.75% OB.6.53% OC.7.14% OD.8.68%