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

Its capital structure consists of $21$ percent debt and $79$ percent common equity.

The company has $14-$year bonds outstanding with a $8\mathrm{.}7$ percent annual coupon that are trading at par.

The company's tax rate is $35$ percent.

The risk$-$free rate is $5$ percent.

The market risk premium is $2\mathrm{.}4$ percent.

The stock's beta is $1\mathrm{.}1.$

What is the company's WACC?

$7\mathrm{.}22\%$

$6\mathrm{.}72\%$

$8\mathrm{.}72\%$

$8\mathrm{.}22\%$

$7\mathrm{.}72\%$