Ace, Inc. needs to raise more capital in the market for expansion. Their target capital structure requires them to use 30% debt financing. They plan to issue a 10-year bond. They currently have an 8% semi-annual bond with 10 years left to maturity trading at a yield to maturity of 10%. They use a dividend growth model to calculate their cost of equity. They anticipate paying $2.50 next year and that dividends will grow at 4% indefinitely. Their stock is currently trading at $31.25 per share. Their investment banker tells them they will charge a 4% fee for issuing more shares and a fee of $10 per bond. O A. 10.39% OB. 10.62% O C. 10.85% OD. There is not enough information to answer this question. What discount rate should they use to evaluate their expansion project? (Round to two decimal places.) Ace, Inc. needs to raise more capital in the market for expansion. Their target capital structure requires them to use 30% debt financing. They plan to issue a 10-year bond. They currently have an 8% semi-annual bond with 10 years left to maturity trading at a yield to maturity of 10%. They use a dividend growth model to calculate their cost of equity. They anticipate paying $2.50 next year and that dividends will grow at 4% indefinitely. Their stock is currently trading at $31.25 per share. Their investment banker tells them they will charge a 4% fee for issuing more shares and a fee of $10 per bond. O A. 10.39% OB. 10.62% O C. 10.85% OD. There is not enough information to answer this question. What discount rate should they use to evaluate their expansion project? (Round to two decimal places.)