A firm has a market value of $8.5 million, $1.5 million of which is debt. Its equity beta is 1.2, and the firm's debt is considered risk-free. The firm pays taxes at the marginal rate of 32%. The expected return on the market is 9%, and the relevant risk -free rate is 3%. What is the firms WACC? Round your answer to the nearest tenth of a percent.

12.2%

6.1%

9.0%

8.8%