$6\mathrm{.}67pts$

A company's capital structure consists of $40\%$ debt and $60\%$ equity. The yield on this company's bonds is currently $8\mathrm{.}75\%.$ The beta of this company is $0\mathrm{.}75,$ the risk$-$free rate is $4\mathrm{.}5\%$ and the expected return on the market is $12\mathrm{.}5\%.$ The tax rate of this company is $21\%.$ What is the WACC for this company?

$11\mathrm{.}66\%$

$15\mathrm{.}08\%$

$10\mathrm{.}18\%$

$9\mathrm{.}07\%$

$13\mathrm{.}94\%$