How to solve

Assume that you are on the financial staff of Bagio Company, and you have collected the following data: The yield on the company's outstanding bonds is $7\mathrm{.}75\%,$ its tax rate is $40\%,$ the next expected dividend is $$0\mathrm{.}65$ a share, the dividend is expected to grow at a constant rate of $6\mathrm{.}00\%$ a year, the price of the stock is $$19\mathrm{.}00$ per share, the flotation cost for selling new shares is $F=10\%,$ and the target capital structure is $50\%$ debt and $50\%$ common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget?

$6\mathrm{.}97\%$

$7\mathrm{.}23\%$

$7\mathrm{.}88\%$

$9\mathrm{.}76\%$

$7\mathrm{.}48\%$