Modi Corp has $2,000,000$ shares outstanding, and the stock is currently trading at $$20\mathrm{.}00$ per share. The company has two different bonds outstanding. First, it has $4,000$ zero coupon bonds outstanding. Each zero coupon bond has a face value of $$1,000,$ will mature in $10$ years, and is currently priced at $60\mathrm{.}00\%$ of face value. Second, the company has $6,000$ coupon paying bonds outstanding. Each coupon paying bond is currently priced at $$840\mathrm{.}00,$ and the YTM is $6\mathrm{.}00\%.$ You have decided to calculate the cost of equity using the SML equation. You have estimated that the risk$-$free rate is $3\mathrm{.}00\%,$ and the expected rate of return on the market portfolio is $10\mathrm{.}00\%.$ You also have estimated that the equity beta of the company is $2\mathrm{.}10.$ Finally, the company faces a tax rate of $35\mathrm{.}00\%.$ Using the information given, calculate the cost of capital $($WACC$)$ of Modi Corp.

Question $15$ options:

The WACC is $15\mathrm{.}51\%.$

The WACC is $17\mathrm{.}70\%.$

The WACC is $15\mathrm{.}83\%.$

The WACC is $15\mathrm{.}54\%.$