Harbuck's Coffee is trying to estimate its weighted average cost of capital. The market value of Harbuck's debt and common stock is 25 million and 75 million respectively. The current 10-year T-bond rate is 2% and the required market return is 10%. Harbuck's Coffee's common stock has a beta of 1.2 and its current market price is $70 with a current dividend of $2 per share with an expected constant growth rate of 9%. Harbuck's Coffee would incur flotation costs of 10% of their current market price if they were to sell new common stock. Harbuck's marginal tax rate is 25% and any new debt raised would have an interest rate of 7%. Assume Harbuck's Coffee will have to sell new common stock to finance potential new projects. What is Harbuck's WACC using the DCF approach for the cost of new common stock? O 12.1% 10.7% 10.0% 10.4% O 10.2%