Assume that you are on the financial staff of Dorval Inc., and you have collected the following data: The yield on the company's outstanding bonds is 8.00%, and its tax rate is 35%. The next expected dividend is $0.65 a share, and the dividend is expected to grow at a constant rate of 6.00% a year. The price of Dorval's stock is $17.50 per share, and the flotation cost for selling new shares is 10%. The target capital structure is 45% debt, and the balance is common equity. What is your estimate to Dorval's WACC, assuming it must issue new stock to finance its capital budget? O a. 6.99% Ob 7.69% Oc. 7.91% O d. 7.53% O e. None of the above