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A firm has 1,500,000 shares of common stock outstanding with a market price of $5 per share. it has 3,500 bonds outstanding, each selling for

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A firm has 1,500,000 shares of common stock outstanding with a market price of $5 per share. it has 3,500 bonds outstanding, each selling for $1,080. The bonds mature in 18 years, hwve a coupon rate of 8.5%, and pay coupons annually. The firm's beta is 1.2 , the risk-free rate is 5%, and the market risk premium is 7%. The tax. rate is 30%. What is its WACC? a. 1188% b. 1322% c. 1252% d. 10.52% e. 10.87%

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