What is the firm's weighted average cost of capital?

Select one:

a. 9.90%

b. 5.59%

c. 5.70%

d. 6.30%

e. 7.20%

Use the following information to answer the next TWO questions.

The XXX Company has a marginal tax rate of 40%.

The company can issue new bonds at par that would provide a 8.5% YTM.

The firms beta is 0.7, the T-bill rate is 5%, and the market return is 12%.

The firms long-term debt currently sells at par value for $3,000.

The firm has 100 shares of common stock outstanding that sell for $10 per share.