The company has a target capital structure of 40 percent debt and 60 percent equity.
$1000 par value bonds pay 10 percent coupon (semi-annual payments), mature in 20 years, and sell for $849.54.
The company stock beta is 1.2.
Risk-free rate is 10 percent, and market risk premium is 5 percent.
The company's marginal tax rate is 40 percent.
The weighted average cost of capital (WACC) is closest to（     ）。