Upton Umbrellas has a cost of equity of 12.3 percent, the YTM on the company's bonds is 6 percent, and the tax rate is 24 percent. The company's bonds sell for 103.9 percent of par. The debt has a book value of $429,000 and total assets have a book value of $959,000. If the market-to-book ratio is 2.95 times, what is the company's WACC?

Multiple Choice

10.58%

8.92%

8.76%

6.28%

9.89%