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Question 9 10 pts A firm has 75,000 bonds outstanding that are selling at par and have a current yield to maturity of 7.50 %.

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Question 9 10 pts A firm has 75,000 bonds outstanding that are selling at par and have a current yield to maturity of 7.50 %. The company also has 750,000 shares of 6% preferred stock and 2.5 million shares of common stock outstanding. The preferred stock sells for $64 per share. The common stock has a beta of 1.21 and sells for $44 per share. The U.S. Treasury bill is yielding 2.30 % and the expected return on the market is 11.20 %. The corporate tax rate is 34%. What is the firm's weighted average cost of capital? o 10.64% 0 9.69% o 11.56% G 11.30%

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