Assume that you are on the financial staff of Michelson Inc., and you have collected the following data: - The yield on the company's outstanding bonds is 8.00%, and its tax rate is 40% - The next expected dividend is $0.65 - share, and the dividend is expected to grow at a constant rate of 6.00% a year. - The price of Michelson's stock is $17.50 per share, and the flotation cost for selling new shares is F = 10%. - The target capital structure is 45% debt and the balance is common equity. What is Michelson's WACC, assuming it must issue new stock to finance its capital budget? O a. 7.34% Ob. 6.98% O c. 7.73% Od. 6.63%