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Skolits Corporation has a cost of equity of 1 1 . 1 percent and an aftertax cost of debt of 4 . 6 5 percent.

Skolits Corporation has a cost of equity of 11.1 percent and an aftertax cost of debt of 4.65 percent. The company's balance sheet lists long-term debt of $375,000 and equity of $635,000. The company's bonds sell for 105.5 percent of par and market-to-book ratio is 3.01 times. If the company's tax rate is 35 percent, what is the WACC?
A)9.99%
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