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The companys beta is 0.95, the average return on the market index is 15%, and the risk-free return is 2%. The company has a target

The companys beta is 0.95, the average return on the market index is 15%, and the risk-free return is 2%. The company has a target capital structure of Debt-to-Equity = 1/3. The yield to maturity on the companys bonds is 4% and it is in a 21% income tax bracket. Find WACC.

a.
10.90%

b.
11.55%

c.
10.62%

d.
11.76%

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