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Immobila Corp. is financed 60% with equity and 40% with debt. Currently, its debt has a before-tax yield to maturity of 10%. Immobila's common stock

Immobila Corp. is financed 60% with equity and 40% with debt. Currently, its debt has a before-tax yield to maturity of 10%. Immobila's common stock trades at $15 per share and its expected dividend $1.00. Future dividends are expected grow by 5%. If the tax rate is 35%, what is Immobila's WACC?

A. 10.7%

B. 9.80%

C. 9.60%

D. 8.70%

E. 8.57%

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