Given the following information for Fraser Company, find the WACC. Assume the company s tax rate is 25 percent. Debt: 34,000 bonds outstanding, 7 percent coupon, $1,000 par value, 20 years to maturity, selling for 101 percent of par; the bonds make semiannual coupon payments. Common stock: 500,000 shares outstanding, selling for $63 per share; the beta is 1.58. Market: 7.0 percent market risk premium and 4.0 percent risk-free rate.

9.49%

9.91%

10.28%

10.57%

10.84%