KMaih Berhad has a capital structure that consists of 60% equity and 40% debt. The companys long-term bonds have a before-tax yield to maturity of 6%. KMaihs common stock currently trades at RM20 per share. The year-end dividend is expected to be RM2.00 per share, and the dividend is expected to grow forever at a constant rate of 5% a year. The company estimates that it will have to issue new common stock to help fund this years projects. The flotation cost on new common stock issued is 10%, and the companys tax rate is 24%. What is the companys weighted average cost of capital, WACC?

a. 9.60 percent

b. 9.00 percent

c. 10.05 percent

d. 11.49 percent