The common stock of Hopewell Co. has a beta of 1.1. The Treasury bill rate is 5 percent and the market risk premium is estimated at 7 percent. Hopewell’s capital structure is 40 percent debt with a yield to maturity of 6.9 percent. If the company pays no taxes, what is its weighted-average cost of capital? 9.22 percent 10.38 percent 13.68 percent 12.70 percent 6.96 percent