Assume JUP has debt with a book value of

$ 19$19

million, trading at 120% of par value. The bonds have a yield to maturity of

6 %6%.

The firm has book equity of

$ 18$18

million, and 2 million shares trading at

$ 19$19

per share. The firm's cost of equity is

10 %.10%.

What is JUP's WACC if the firm's marginal tax rate is

3535%?

A.

7.717.71%

B.

6.176.17%

C.

8.488.48%

D.

8.18.1%