Given the following information about your firms capital structure, calculate your firms WACC (assume the corporate tax rate is 35%).

• Debt
  • Number of bonds outstanding = 14,000
  • price per bond = $1,165
  • par value per bond = $1,000
  • coupon rate = 6% (paid annually)
  • Years to maturity = 10

• Common Stock
  • Number of shares outstanding = 1,000,000
  • Price per share = $25
  • Book value per share = $15
  • Beta = 1.4
  • Risk free rate = 4.5%
  • Market risk premium = 5%

A.) 7.19%

B.) 8.53%

C.) 7.72%

D.) 7.98%

E.) 9.08%