Assume a not-for-profit skilled nursing facility chain has a target capital structure that is 60 percent debt and 40 percent equity. The marginal before-tax cost of debt is 4 percent, and the marginal cost of equity is estimated to be 10 percent. What is the organizations corporate cost of capital (rounded to the nearest tenth of a percent)?

Group of answer choices

17.1

6.4

7.9

5.5

7.5