Lion Inc. recently hire you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have an 8% annual coupon, a par value of $1,000, and a market price of $1,050. (2) The company's tax rate is 40%. (3) The risk-free rate is 4.50% and the market risk premium is 5.50%. The stock has a beta of 1.20. (4) The target capital structure consists of 35% debt and the remainder is common stock. (5) The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. Please identify the company's WACC. 7.54% 8.35% 7.16% 7.93% 8.35% 7.16% 7.93% 8.79%