The Flying Dove has 1,600 bonds outstanding with a $1,000 par value, a coupon rate of 5.5 percent, 12 years to maturity, annual interest payments, and a market price equal to par. The firm also has 52,000 shares of common stock outstanding at a price per share of $43 and a beta of 1.3. The risk-free rate is 3 percent, the market risk premium is 7 percent, and the tax rate is 35 percent. What is the company's WACC?

Multiple Choice

9.82%

8.54%

10.51%

9.37%

7.38%