Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the company's outstanding bonds is $7\mathrm{.}75\%,$ its tax rate is $25\%,$ the next expected dividend is $$0\mathrm{.}65$ a share, the dividend is expected to grow at a constant rate of $6\mathrm{.}00\%$ a year, the price of the stock is $$14\mathrm{.}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?

$10\mathrm{.}12\%$

$9\mathrm{.}96\%$

$8\mathrm{.}23\%$

$7\mathrm{.}98\%$

$8\mathrm{.}75\%$