Skolits Corp. has a cost of equity of 10.7 percent and an aftertax cost of debt of 4.11 percent. The company's balance sheet lists long-term debt of $285,000 and equity of $545,000. The company's bonds sell for 94.5 percent of par and market-to-book ratio is 2.47 times. If the company's tax rate is 40 percent, what is the WACC?

9.60%

10.20%

9.33%

8.88%

8.44%