1. What is the WACC (Weighted Average Cost of Capital) for BRK based on the information given here:

BRKs cost of equity was 9.2%, which reflected a beta of 0.90, an expected market return of 9.90%, and a risk-free rate of 2.89%. The yield on corporate bonds rated AA was 3.95%and after a 39% expected marginal tax rate, the cost of debt would be 2.3%. Weights of capital were 16.9% for debt and 83.1% for equity. In contrast, the beta for PCP was 0.38. Analysts expected that PCPs cash flows would grow indefinitely at about the long-term expected real growth rate of the U.S. economy, 2.5%.

1. 5.0%
2. 5.5%
3. 8.0%
4. 9.2%

Please show work.