1. You are looking at the following information:

Debt:		4,500 6.5 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.
Common stock:		90,000 shares outstanding, selling for $56 per share; the beta is 1.14.
Preferred stock:		13,500 shares of 6 percent preferred stock (review my Ch.8 slide 43: what does "...% preferred stock" phrase mean?) outstanding, currently selling for $108 per share.
Market:		8 percent market risk premium and 5 percent risk-free rate.

The company is in the 34 percent tax rate bracket based on its corporate income.

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

9.63%

8.93%

8.76%

8.66%

9.16%