Debt:		3,500 8.5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock:		80,500 shares outstanding, selling for $58 per share; the beta is 1.14.
Preferred stock:		10,500 shares of 7 percent preferred stock outstanding, currently selling for $106 per share.
Market:		9.5 percent market risk premium and 6 percent risk-free rate.

Assume the company's tax rate is 34 percent.

Required:

Find the WACC. (Do not round your intermediate calculations.)

Multiple Choice

• 11.58%

• 11.35%

• 11.18%

• 11.08%

• 12.25%

Multiple Choice

• 11.85%

• 13.23%

• 10.01%

• 14.62%

• 13.93%