MB Inc. has $75,000$ bonds outstanding that are selling at par. Bonds with similar characteristics are yielding $7\mathrm{.}5$ percent. The company also has $750,000$ shares of $7$ percent preferred stock and $2\mathrm{.}5$ million shares of common stock outstanding. The preferred stock sells for $$70$ a share. The common stock has a beta of $1\mathrm{.}34$ and sells for $$50$ a share. The U$.$S$.$ Treasury bill is yielding $2\mathrm{.}8$ percent and the return on the market is $11\mathrm{.}2$ percent. The corporate tax rate is $33$ percent. What is the firm's weighted average cost of capital? Select the choice that is closest to your answer.

$10\mathrm{.}36$ percent

$10\mathrm{.}49$ percent

$10\mathrm{.}53$ percent

$10\mathrm{.}60$ percent