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

Its capital structure consists of $7$ percent debt and $93$ percent common equity.

The company has $15-$year bonds outstanding with a $7\mathrm{.}9$ percent annual coupon that are trading at par.

The company's tax rate is $40$ percent.

The risk$-$free rate is $5\mathrm{.}5$ percent.

The market risk premium is $1\mathrm{.}6$ percent.

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

What is the company's WACC?

$7\mathrm{.}38\%$

$8\mathrm{.}28\%$

$7\mathrm{.}68\%$

$7\mathrm{.}08\%$

$7\mathrm{.}98\%$