Dorris & Co has 1 million bonds outstanding that have a par value of $1000 and market price of $800 each. The 8 coupons are paid semiannually. The bonds mature in 18 years. The company has 100 million share outstanding of common stock that currently trade at $19 each. Dorris's stock has a beta of 0.9. If the risk-free rate is 2%, market premium is 8% and corporate tax rate is 21%, then what is Dorris's weighted average cost of capital (WACC). (It has no preferred stock)

8.93%

6.51%

11.4%

8.31%

7.66%