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Wilson's has 1 0 , 0 0 0 shares of common stock outstanding at a market price of $ 3 5 a share. The firm

Wilson's has 10,000 shares of common stock outstanding at a market price of $35 a share. The firm also has a bond issue outstanding with a total face value of $250,000 which is selling for 102 percent of face value. The cost of equity is 11 percent while the pre-tax cost of debt is 8 percent. The firm has a beta of 1.1 and a tax rate of 34 percent. What is Wilson's weighted average cost of capital?
9.63 percent
8.72 percent
8.59 percent
9.08 percent
10.05 percent
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