A financial analyst at International Ltd. wants to compute the company's weighted average cost of capital (WACC) using the dividend discount model. The analyst has gathered the following data: Before tax cost of debt 8 percent Tax rate 45 percent Debt capitalization 50 percent Equity capitalization 50 percent Stock price $30 New year's dividend $1.50 Estimated growth rate 7 percent The Company's WACC is closest to: O a. 6 percent O b. 8 percent c. 9 percent O d. 10 percent