Billick Brothers is estimating its WACC. The company has collected the following information:

Its capital structure consists of 28 percent debt and 72 percent common equity.

The company has 13-year bonds outstanding with a 8.5 percent annual coupon that are trading at par.

The companys tax rate is 32 percent.

The risk-free rate is 4.3 percent.

The market risk premium is 3.5 percent.

The stocks beta is 1.1.

What is the companys WACC?

Answer Choice Below.

6.39%

6.69%

7.19%

7.49%

6.89%