Sapp Truckings balance sheet shows a total of noncallable $45million long-term d

Sapp Truckings balance sheet shows a total of noncallable $45million long-term debt with a coupon rate of 7.00% and a yield tomaturity of 6.00%. This debt currently has a market value of $50million. The balance sheet also shows that the company has 10million shares of common stock and the book value of the commonequity (common stock plus retained earnings) is $65 million. Thecurrent stock price is $22.50 per share; stockholders requiredreturn rs is 14.00%; and the firms tax rate is 40%. The CFOthinks the WACC should be based on market value weights but thepresident thinks book weights are more appropriate. What is thedifference between these two WACCs? a. 1.55% b. 1.72% c. 1.91% d.2.13% e. 2.36%Show steps