Kittle Corp. issued bonds five years ago which currently have a yield to maturity, YTM, of 6.20%. The beta for the Kittle Corp. common stock is 1.2. Kittle has a target capital structure of 30% debt and 70% equity. Assume Kittle Corp has a 21% marginal tax rate. Finally, assume the risk-free rate is 3% and the market risk premium is 7%. What is Kittle's weighted average cost of capital, WACC?

Select one:

a. 6.89%

b. 7.26%

c. 7.64%

d. 8.04%

e. 9.45%