ABC Corporation is levered. This means its capital structure consists of both debt and equity.

In terms of book value, the weight of debt is $73$ percent, and in terms of market value the weight of debt is $33$ percent.

ABC Corporation's cost of equity equals $10\mathrm{.}69$ percent, and its pretax cost of debt equals $5\mathrm{.}37$ percent.

The company pays a $21$ percent tax rate on all taxable income.

Calculate ABC Corporation's weighted average cost of capital.

Multiple Choice

$11\mathrm{.}31\%$

$8\mathrm{.}56\%$

$6\mathrm{.}79\%$

$9\mathrm{.}53\%$

$8\mathrm{.}93\%$