Skolits Corporation has a cost of equity of 11.2 percent and an aftertax cost of debt of 4.62 percent. The company's balance sheet lists long-term debt of $370,000 and equity of $630,000. The company's bonds sell for 105.3 percent of par and market-to-book ratio is 2.98 times. If the company's tax rate is 21 percent, what is the WACC?

• 8.77%

• 10.07%

• 9.75%

• 10.70%

• 9.26%