Skolits Corp. has a cost of equity of 11.5 percent and an aftertax cost of debt of 4.35 percent. The company's balance sheet lists
long-term debt of $325,000 and equity of $585,000. The company's bonds sell for 96.1 percent of par and the market-to-book
ratio is 2.71 times. If the company's tax rate is 21 percent, what is the WACC?
O 10.32%
O 8.95%
O 10.17%
O 9.56%
O 10.97%
4