Skolits Corp. has a cost of equity of 10.7 percent and an aftertax cost of debt of 4.77 percent. The company's balance sheet lists long-term debt of $395,000 and equity of $655,000. The company's bonds sell for 106.3 percent of par and market-to-book ratio is 3.13 times. If the company's tax rate is 40 percent, what is the WACC?

8.92%

9.69%

8.47%

10.30%

9.37%