UNT has a beta of $0\mathrm{.}97$ and a debt$-$to$-$equity ratio of $0\mathrm{.}46.$ The market rate of retum is $11\mathrm{.}3$ percent, the tax rate is $34$ percent, and the risk$-$free rate is $2\mathrm{.}2$ percent. The pretax cost of debt is $6\mathrm{.}4$ percent. What is the firm's WACC?

HINT, the debmo$-$equily ratio is NOT the weight of debt.

$\frac{D}{E}=\mathrm{.}46$

$\frac{D}{N}=\frac{D}{D+E}$

Multiple Choice

B$\mathrm{.}39\%$

$767\%$

$8\mathrm{.}88\%$

$9\mathrm{.}46\%$