Wentworth's Five and Dime Store has a cost of equity of 11.7 percent. The company has an aftertax cost of debt of 5.3 percent, and the tax rate is 21 percent. If the company's debt-equity ratio is .77, what is the weighted average cost of capital?

• 7.42%

• 8.92%

• 6.80%

• 7.04%

• 8.11%