ABC Corporation has $$100$ million in debt outstanding. The debt has $6$ years to maturity and a $6\%$

coupon. The debt has a par value of $$1,000$ per bond and interest is paid semi$-$annually. The current

price of the bond is $97\mathrm{.}50$ as a percent of par.

The company has $10$ million of stock outstanding with a market price of $$30$ per share. The stock

has a beta of $1\mathrm{.}54$ with the market.

The company is in the $25\%$ tax bracket and the risk$-$free rate is $4\%$ with a $6\%$ market risk premium.

What is the weighted average cost of capital $($WACC$)$ for ABC Corporation?

$10\mathrm{.}26\%$

$10\mathrm{.}54\%$

$9\mathrm{.}38\%$

$11\mathrm{.}15\%$