. Rector Incorporated i s a manufacturing firm with a capital structure comprising of equity current market value of equity is $2.0 million, and the beta of the stock is 1.2. The mpany has outstanding bonds amounting to $4 million in face value, which pay semi-annua oupons at an annual rate of 8%. The yield-to-maturity is 9%, and the remaining term to naturity is 5 years. e corporation pays tax at a rate of 25%, and the equity risk premium and risk-free rate are 4% and 2%, respectively. Rector Incorporated's weighted average cost of capital (WACC) is closest to