A firm is currently financed with $400 of debt and $600 of equity.The expected return on the debt is 5%. The market beta of the firms equity is 1.2; the risk -free rate is 2%; and the equity premium is 6%.The firm pays taxes at the marginal rate of 40%. What is the firms WAC?Round your answer to the nearest tenth of a percent.

which of these answers is true?

5.5%

6.7%

9.2%

5.5%