Wing Air, Inc. has a target capital structure of 60% percent common stock and 40% percent debt. It’s cost of equity is 11% percent and cost of debt is 8% percent. The tax rate is 35% percent. What is Wing Air’s weighted average cost of capital?

Common stock   60%

Debt                   40%

Cost of equity     11%

Cost of debt         8%

Tax rate              35%

6.88%

8.68%

4.52%

9.46%