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

Its capital structure consists of 33 percent debt and 67 percent common equity.

The company has 10-year bonds outstanding with a 7 percent annual coupon that are trading at par.

The companys tax rate is 33 percent.

The risk-free rate is 5.4 percent.

The market risk premium is 3.1 percent.

The stocks beta is 1.5.

What is the companys WACC?

Group of answer choices:

8.28%

7.98%

7.68%

8.58%

8.88%