Daves Diners Inc, recently hired you as a consultant to estimate the company's WACC. The firm has the following capital structure before today's new financial infusion of capital: You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have an 9.00% annual coupon, a par value of $1,000, and a market price of $1,344.00. (2) The company's tax rate is 25%. (3) The risk-free rate, rRF, is 4.50%, the return on the market, rM, is 10.0%, and the stock's beta ( ) is 1.20 . (4) The firm's capital structure, shown above, is considered optimal, so new funding will be raised in the same proportions. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC? A. 7.1% B. 7.5% C. 7.9% D. 8.5% E. 9.1%