To calculate the pretax WACC (Weighted Average Cost of Capital), we need to find the weighted average of the cost of equity and the after-tax cost of debt.
First, let's calculate the after-tax cost of debt:
After-tax cost of debt = pre-tax cost of debt x (1 - tax rate)
Since the tax rate is not given in the question, we will assume it to be 30% (a common corporate tax rate).
After-tax cost of debt = 9% x (1 - 0.3) = 6.3%
Next, we need to find the cost of equity. The cost of equity can be calculated using the Capital Asset Pricing Model (CAPM):
Cost of equity = Risk-free rate + Beta x Market risk premium
The risk-free rate is typically the yield on a long-term government bond, which is not given in the question. Let's assume it to be 3%.
The beta is also not given in the question. Let's assume it to be 1.2, which is a typical beta for a moderately risky stock.
The market risk premium is the excess return that investors expect to receive for holding a risky asset. Let's assume it to be 8%.
Cost of equity = 3% + 1.2 x 8% = 12.6%
Now we can calculate the WACC as follows:
WACC = (Equity / Total capital) x Cost of equity + (Debt / Total capital) x After-tax cost of debt
Total capital = Equity + Debt = $36,000 + $12,000 = $48,000
Equity / Total capital = $36,000 / $48,000 = 0.75
Debt / Total capital = $12,000 / $48,000 = 0.25
WACC = 0.75 x 12.6% + 0.25 x 6.3% = 9.9%
Therefore, the firm's pretax WACC is 9.9%. None of the given answer options matches this result, so the correct answer is not provided.