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Delta Lighting has 2 4 , 5 0 0 shares of common stock outstanding at a market price of $ 1 9 a share. This

Delta Lighting has 24,500 shares of common stock outstanding at a market price of $19 a share. This stock was originally issued at $23 per share. The firm also has a bond issue outstanding with a total face value of $250,000 which is selling for 92% of par. The cost of equity is 13.2%, while the after-tax cost of debt is 5.2%. The firm has a beta of 1.33 and a tax rate of 29%. What is the weighted average cost of capital (in % rounded to 2 decimal places)? The answer is not 10.12%.

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