You are looking at the following information: Debt: 2,500 7.5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 50,000 shares outstanding, selling for $60 per share; the beta is 1.07. Preferred stock: 8,500 shares of 7 percent preferred stock outstanding, currently selling for $106 per share. Market: 8 percent market risk premium and 6 percent risk-free rate. The company is in the 34 percent tax rate bracket based on its corporate income. Required: Find the WACC. (Do not round your intermediate calculations.)

Multiple Choice

10.43%

9.87%

9.47%

9.66%

9.37%