Billick Brothers is estimating its WACC. The company has collected the following information: Its capital structure consists of 35 percent debt and 65 percent common equity. The company has 16-year bonds outstanding with a 8.9 percent annual coupon that are trading at par. The companys tax rate is 31 percent. The risk-free rate is 4.7 percent. The market risk premium is 2.7 percent. The stocks beta is 1.1. What is the companys WACC?

7.13%

6.93%

6.73%

6.53%

6.33%