Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The annual yield on the company's outstanding bonds is 7.75%, the company's tax rate is 40%, the next expected dividend on the company's common stock is $0.65 (D; - $.65) per share, the dividend is expected to grow at a constant rate of 6.00% a year, the price of the stock is $15.00 per share, the flotation cost for selling new shares is F = 10% ( 10 in decimal form) of the price at which the stock would be sold by the company (assume the company can sell new shares at $15.00 per share), 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? (select the answer closest to the answer you calculate) 6.89% 7.64% 7.26% 8.04% 8.44%