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MC algo $14-22$ Calculating WACC

Western Electric has $24,500$ shares of common stock outstanding at a price per share of $$64$ and a rate of return of $13\mathrm{.}75$ percent. The firm has $6,550$ shares of $6\mathrm{.}30$ percent preferred stock outstanding at a price of $$87\mathrm{.}50$ per share. The preferred stock has a par value of $$100.$ The outstanding debt has a total face value of $$359,000$ and currently sells for $103\mathrm{.}5$ percent of face. The yield to maturity on the debt is $7\mathrm{.}63$ percent. What is the firm's weighted average cost of capital if the tax rate is $21$ percent?

Multiple Choice

$10\mathrm{.}58\%$

$11\mathrm{.}11\%$

$8$ of $14$

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