The Internet Express Company has 1.4 million shares of stock outstanding. The stock currently sells

for $20/share. The firms debt is publicly traded and was recently quoted at 93% of face value. The

debt has a total face value of $5 million, and it is currently priced to yield 11%. The risk-free rate is

8% and the market risk premium is 7%. Youve learned that Internet Express has a beta of .74. If the

corporate tax rate is 34%, what is the companys WACC?

a. 12.9%

b. 11.0%

c. 12.3%

d. 13.2%

e. 12.0%