1. Assume that you are an intern with the Lowell Company, and you have collected the following data: The yield on the company's outstanding bonds is 7.75%; its tax rate is 21%; the next expected dividend is $0.85 a share; the dividend is expected to grow at a constant rate of 6.00% a year; the price of the stock is $15.00 per share; the flotation cost for selling new shares is F = 10%; and the target capital structure is 45% debt and 55% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget?

   		8.7%
   		9.11%
   		9.52%
   		9.83%