Diamodis, Inc. has an optimal capital structure of 65% debt and 35% equity. The firm's bonds, which have a $1000 par value, a coupon rate of 11.25% (semi-annual payments), and mature in 18 years, currently trade in the bond market for $1128.00. Diamodis' common stock sells for $96.50 per share. The company just paid a dividend of $7.20 per share (i.e., DO = 7.20) and future dividends are expected to grow at a rate of 2.7% per year forever. Diamodis, Inc.'s marginal tax rate is 30%. Based on this information, the weighted average cost of capital (WACC) for Diamodis, Inc. is _______%. 08.7 10.0 9.4 8.1 10.7