You Are Given the Following Information Concerning Around Town Tours

Multiple Choice

You are given the following information concerning Around Town Tours:
Debt:7,500, 6.8 percent coupon bonds outstanding, with 11 years to maturity and a quoted price of 97.9.These bonds pay interest semiannually.
Common stock: 284,000 shares of common stock selling for $68 per share.The stock has a beta of 1.04 and will pay a dividend of $2.62 next year.The dividend is expected to grow by 2.5 percent per year indefinitely.
Preferred stock:9,000 shares of $8 preferred stock selling at $88 per share.
Market: 14.6 percent expected return, 4.1 percent risk-free rate
Company:34 percent tax rate.
Calculate the WACC for this firm.

A) 9.0 percent
B) 8.7 percent
C) 9.4 percent
D) 9.6 percent
E) 10.0 percent