Assume that you are on the financial staff of McNulty Corpor…

Assume that you are on the financial staff of McNulty Corporation, and you have collected the following data:  (1) The yield to maturity on the company’s outstanding 10% annual coupon bonds is 8%, and its tax rate is 25%.  (2) The risk-free rate is 3.0%, the market risk premium (rM – rRF) is 5.0%, and the firm’s beta is 1.15.  (3) The firm’s capital structure consists of 45% debt and 55% equity.  What is McNulty’s WACC?