Suppose that a firm has $8$ million shares of common stock outstanding. The current share price is $$82,$ and the book value per share is $$6.$ Suppose the most recent dividend was $$4\mathrm{.}90$ and the dividend growth rate is $5\mathrm{.}4\%.$

The company also has a bond issue outstanding. The issue has a face value of $$255$ million, matures in $25$ years, has a coupon rate of $7\%,$ and sells for $93.$ The bonds make semiannual payments.

What is the company's WACC if its effective tax rate is $23\%?$

Multiple Choice

$8\mathrm{.}15\%$

$8\mathrm{.}95\%$

$9\mathrm{.}45\%$

$10\mathrm{.}15\%$

None of the above