Assume that you are on the financial staff of Jamar Inc, and you have collected the following data: The yield on the companys outstanding bonds is 9%, its tax rate is 21%, the next expected dividend is $2 a share, the dividend is expected to grow at a constant rate of 10% a year, the price of the stock is $15 per share, the flotation cost for selling new shares is F = 10%, and the target capital structure is 15% debt and 85% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget?

a.

22.16%

b.

24.82%

c.

20.90%

d.

22.44%

e.

21.92%