company's tax rate is $21$ percent.

Debt: $8,100,6\mathrm{.}9$ percent coupon bonds outstanding. $$1,000$ par value, $17$ years to maturity, selling for $101$ percent of par, the bonds make semiannual payments.

Common stock: $175,000$ shares outstanding, selling for $$77$ per share, beta is $1\mathrm{.}32$

Preferred stock: $9,000$ shares of $$7\mathrm{.}50$ preferred stock outstanding, currently selling for $$73$ per share.

Market: $7\mathrm{.}9$ percent market risk premium and $3\mathrm{.}6$ percent risk$-$free rate.

Multiple Choice

$10\mathrm{.}4\%$

$12\mathrm{.}0\%$

$12\mathrm{.}4\%$

$10\mathrm{.}7\%$

$9\mathrm{.}8\%$