1. A company has the following information. Debt: 20,000 bonds outstanding, 6 percent coupon, $1,000 par value, 10 years to maturity, selling for 102 percent of par; the bonds make semiannual coupon payments. Common stock: 280,000 shares outstanding, selling for $55 per share; the beta is 1.90. The company's tax rate is 25 percent. The market risk premium (MRP) is 7.0 percent and the risk-free rate is 3.0 percent. Find the company's weighted average cost of capital (WACC).

   		9.01%
   		9.16%
   		9.31%
   		9.46%
   		9.61%