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Assume that you are on the financial staff of Jamar Inc, and you have collected the following data: The yield on the company's outstanding bonds

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Assume that you are on the financial staff of Jamar Inc, and you have collected the following data: The yield on the company's 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 5% a year, the price of the stock is $16 per share the flotation cost for selling new shares is F = 10%, and the target capital structure is 35% debt and 65% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget? a 14.77% ob 18.89% Oc 13.86% od 15.43% e. 14.52%

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