A firm is funded with $$900$ million in equity and $$300$ million in debt. The yield to maturity on bonds issued by the firm is $8\mathrm{.}00\%.$ The tax rate is $40\%.$ The firm has a beta of $1\mathrm{.}25.$ The risk$-$free rate is $4\%,$ and the market risk premium is $5\%.$

What is the weighted average cost of capital for this firm?

A firm is funded with $$900$ million in equity and $$300$ million in debt. The yield to maturity on bonds issued by the firm is $8\mathrm{.}00\%.$ The tax rate is $40\%.$ The firm has a beta of $1\mathrm{.}25.$ The risk$-$free rate is $4\%,$ and the market risk premium is $5\%.$

What is the weighted average cost of capital for this firm?

$8\mathrm{.}89\%$

$9\mathrm{.}69\%$

$9\mathrm{.}125\%$

$10\mathrm{.}25\%$