Question $7(1$ point$)$

Listen

WACC: The yield to maturity on a company's debt is $7\mathrm{.}3\%$ per year, the cost of preferred stock financing is $7\mathrm{.}8\%$ per year, and the company's cost of common equity financing is $14\mathrm{.}7\%$ per year. The company's tax rate is $34\%.$ The market value of the debt is $$142\mathrm{.}8$ million, the market value of the preferred stock is $$84\mathrm{.}2$ million, and the market value of common equity is $$164\mathrm{.}3$ million. What is the company's annual weighted average cost of capital?

$8\mathrm{.}76\%$

$9\mathrm{.}61\%$

$9\mathrm{.}97\%$

$9\mathrm{.}22\%$

$8\mathrm{.}94\%$