You are looking at the following information:

Debt:		3,000 7 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock:		69,000 shares outstanding, selling for $56 per share; the beta is 1.13.
Preferred stock:		9,000 shares of 6.5 percent preferred stock (review my Ch.8 slide 43: what does "...% preferred stock" phrase mean?) outstanding, currently selling for $105 per share.
Market:		8.5 percent market risk premium and 6.5 percent risk-free rate.

The company is in the 32 percent tax rate bracket based on its corporate income.

Required:

Find the WACC. (Do not round your intermediate calculations.)

Multiple Choice

• 10.37%

• 10.27%

• 10.53%

• 11.2%