Please explain in full detail:

Given the following information for Boston Electric Company, find its WACC. Assume the company s tax rate is 25 percent. Debt: 28,000, 6 percent coupon bonds outstanding, $1,000 par value, 10 years to maturity, selling for 99 percent of par; the bonds make semiannual coupon payments. Common stock: 500,000 shares outstanding, selling for $42 per share; the beta is 1.78. Market: 7.0 percent market risk premium and 3 percent risk-free rate.

8.31%

8.86%

9.28%

9.58%

9.93%