The Anson Jackson Court Company (AJC) currently has $200,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6%. Its earnings before interest and taxes (EBIT) are $100,000, and it is a zero growth company. AJC's current cost of equity is 8.8%, and its tax rate is 40%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $55.00. What is AJC's current total market value and weighted average cost of capital?
A. $850,000 ;7.3%
B. $750,000; 7.4%
C.$950,000; 7.4%