Calculate the weighted average cost of capital (WACC) of company ABC Inc., if: I. The companys current capital structure consists of 35% from a long-term corporate bond, 30% from new common stock to be issued in the coming months, 20% from retained earnings and the rest is financed by a bank loan. The corporate tax rate is 35%. II. The companys cost of debt from the bond issuance is 9% and from the bank loan is 8%. III. The current stock price of common stock is 10, the current dividend (Do) is 0.80 per share and dividends are expected to grow by 2% per year. New common stock flotation costs stand at 3% of the current stock price.

A. Around 11%

B. Around 9%

C. Around 8%

D. Around 7%

E. None of the given answers is correct