Finally There! Has 1,500 Bonds Outstanding with a $1,000 Par

Multiple Choice

Finally There! has 1,500 bonds outstanding with a $1,000 par value,a yield to maturity of 6.4 percent,and a market price of $989 each.The firm also has 74,000 shares of common stock outstanding at a price per share of $35 and a beta of 1.08.The risk-free rate is 2 percent,the market risk premium is 7 percent,and the tax rate is 34 percent.What is the company's WACC?

A) 9.58%
B) 8.34%
C) 7.62%
D) 9.19%
E) 10.12%