Valueco Inc has a reported capital structure of 40% debt and 60% equity and has a marginal tax rate of 17%. The company has a beta of 0.74 and estimates the yield on treasures to be 3%. If the expected return on the market is 15% and Valuecos cost of debt is 9.4%, what is the firms WACC?

10.25%

12.40%

11.27%

13.64%

9.32%