A firm has $2,000,000$ shares $=(0\mathrm{.}537140,14)+(0,04280,09)(1-0,34)$ each selling for $$1,200.$ The bonds mature in $15$ years, have a coupon rate price of $$2$ per share. It has $2,000.$ and pay coupons annually. The firm's beta is $1\mathrm{.}2,$ the risk free rate is $5\%,$ and the market risk premium is $7\%.$ The tax rate is $34\%.$ Calculate the WACC.

A$.5\mathrm{.}42\%$

B$.6\mathrm{.}53\%$

C$.9\mathrm{.}36\%$

D$.10\mathrm{.}85\%$

E$.11\mathrm{.}57\%$

Answer: $($

$R_E=R_f+(R_m-R_t)=$

$=20000002=4000000$