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AA firm has 2 , 0 0 0 , 0 0 0 shares of common stock outstanding with a market price of $ 3 per

AA firm has 2,000,000 shares of common stock outstanding with a market price of $3 per share. It has 2,000 bonds outstanding, each selling for $1,120. The bonds mature in 15 years, have a coupon rate of 10%, 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?
Multiple Choice
8.55%
10.98%
11.11%
11.66%
11.38%

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