9. An analyst has collected the following information regarding Christopher Co.: The companys capital structure is 70 percent equity, 30 percent debt. The yield to maturity on the companys bonds is 9 percent. The companys year-end dividend is forecasted to be $0.80 a share. The company expects that its dividend will grow at a constant rate of 9 percent a year.

The companys stock price is $25. The companys tax rate is 40 percent. The company anticipates that it will need to raise new common stock this year. Its investment bankers anticipate that the total flotation cost will equal 10 percent of the amount issued. Assume the company accounts for flotation costs by adjusting the cost of capital. Given this information, calculate the companys WACC.

A. 10.41%

B. 12.56%

C. 10.78%

D. 13.55%

E. 9.29%