Which of the following statements about weighted average cost of capital (WACC) is CORRECT?

	A.	Most of companies WACC is higher than the rate of returns their common stockholders require/expect.
	B.	Most of companies WACC is lower than the required rate of return on their common stocks.
	C.	Most of companies WACC is lower than the yield to maturities on the bonds they issued.
	D.	A companys WACC is determined by the coupon rate on the bonds the companies issued.

David Ortiz Motors has a capital structure of 40% debt and 60% equity. The yield to maturity on the companys outstanding bonds is 6.78% and the companys tax rate is 35%. Ortizs CFO has calculated the companys cost of equity is 15.25%.

What is the Weighted Average Cost of Capital for David Ortiz Motors?

Please round your answer to the fourth decimal. If your answer is 1.23%, you should input 0.0123.