You are looking at the following information:

Debt:		3,500 8.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock:		77,000 shares outstanding, selling for $63 per share; the beta is 1.06.
Preferred stock:		11,000 shares of 7.5 percent preferred stock outstanding, currently selling for $105 per share.
Market:		10 percent market risk premium and 7.5 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

12.15%

13.01%

11.88%

11.98%

12.38%