Xechroeder Construction Co. has $500 million bonds outstanding that are selling at their par value of $1,000 yielding 6.5 percent. The firm also has 50 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U.S. T-bill is yielding 3 percent, the market risk premium is 8 percent, and the firm's tax rate is 21 percent. What is the firm's weighted average cost of capital assuming its earnings are sufficient to classify all interest as a tax-deductible expense? 10.65 percent None of the above 11.39 percent 10.47 percent 10.10 percent