Multiple Choice XYZ Corporation's capital structure consists of 70% debt (with a pretax cost of 10%), and the balance of common equity (with a cost of 12%). The company's income tax rate (federal and state combined), t, is 30%. XYZ's weighted-average cost of capital (WACC), to one decimal point, is: 7.9%. 10.9%. 8.5%. 10.3%. 7.3%