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Zungle Mutual Corp. has a capital structure that consists of 35% debt, 10% preferred stock, and 55% common equity. The yield on the debt is

Zungle Mutual Corp. has a capital structure that consists of 35% debt, 10% preferred stock, and 55% common equity. The yield on the debt is 6.50%, the yield on the preferred stock is 6.00%, the cost of common equity is 13.25%. The company's average tax rate is 30%. What is the company's weighted aveage cost of capital (WACC)?

1.

9.25%

2.

9.48%

3.

9.99%

4.

11.20%

5.

9.16%

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