$32$

Western Electric has $32,500$ shares of common stock outstanding at a price per share of $$80$ and a rate of return of $12\mathrm{.}95$ percent. The firm has $7,350$ shares of $7\mathrm{.}90$ percent preferred stock outstanding at a price of $$95\mathrm{.}50$ per share. The preferred stock has a par value of $$100.$ The outstanding debt has a total face value of $$407,000$ and currently sells for $111\mathrm{.}5$ perce of face. The yield to maturity on the debt is $8\mathrm{.}11$ percent. What is the firm's weighted average cost of capital if the tax rate is $40$ percent?

Multiple Choice

$11\mathrm{.}10\%$

$10\mathrm{.}72\%$

$10\mathrm{.}29\%$

$10\mathrm{.}51\%$

$11\mathrm{.}49\%$