Skolits Corp. has a cost of equity of 10.6 percent and an aftertax cost of debt of 4.08 percent. The company's balance sheet lists long-term debt of $280,000 and equity of $540,000. The company's bonds sell for 94.3 percent of par and market-to-book ratio is 2.44 times. If the company's tax rate is 39 percent, what is the WACC?

Multiple Choice

• 9.25%

• 10.11%

• 8.81%

• 8.37%

• 9.51%