Spellman Transportation has $10$ million shares of common stock that are selling at $$22\mathrm{.}50$ per share. The required rate of return of the stock is $14\%.$ Their bond has a yield to maturity of $6\mathrm{.}00\%,$ and all their bonds currently have a market value of $$50$ million. If the firm's tax rate is $40\%,$ what is its WACC?

$12\mathrm{.}11\%$

$9\mathrm{.}75\%$

$11\mathrm{.}45\%$

$8\mathrm{.}27\%$

$6\mathrm{.}00\%$

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Common stock's required rate of return is the cost of equity.

Bond's yield to maturity is the $($before tax$)$ cost of debt.

The firm has no preferred stock.