The Patrick Company's year$-$end balance sheet is shown below. Its cost of common equity is $15\mathrm{.}40\%,$ its before$-$tax cost of debt is $7\mathrm{.}40\%,$ and its marginal tax rate is $35\mathrm{.}00\%.$ Assume that the firm's long$-$term debt sells at par value. The firm has $1,240$ shares of common stock outstanding that sell for $$7\mathrm{.}40$ per share. Calculate Patrick's WACC using market value weights.

$\backslash$table$[[$Assets$,,$Liabilities and Equity,$],[$Cash$,1,000,,],[$Accounts receivable,$2,000,,],[$Inventories$,7,000,$Long$-$term debt,$8,000],[$Plant and equipment, net,$10,000,$Common equity,$12,000],[$Total assets,$20,000,$Total liabilities and equity,$20,000]]$

$11\mathrm{.}674\%$

$11\mathrm{.}164\%$

$11\mathrm{.}400\%$

$10\mathrm{.}468\%$

$12\mathrm{.}200\%$