You are looking at the following information:

Debt:		6,000 5.5 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.
Common stock:		138,000 shares outstanding, selling for $58 per share; the beta is 1.11.
Preferred stock:		18,000 shares of 5 percent preferred stock (review my Ch.8 slide 43: what does "...% preferred stock" phrase mean?) outstanding, currently selling for $104 per share.
Market:		7 percent market risk premium and 5 percent risk-free rate.

The company is in the 33 percent tax rate bracket based on its corporate income.

Required:

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

Multiple Choice

• 8.32%

• 8.72%

• 9%

• 8.39%

• 8.22%