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Plasti-tech Inc. is financed 55% with equity and 45% with debt. Currently, its debt has a before-tax interest rate of 10%. Plasti-tech's common stock trades

Plasti-tech Inc. is financed 55% with equity and 45% with debt. Currently, its debt has a before-tax interest rate of 10%. Plasti-tech's common stock trades at $12 per share and its most recent dividend was $1.20. Future dividends are expected to grow by 5%. If the tax rate is 40%, what is Plasti-tech's WACC?
a) 10.57%
b) 9.20%
c) 7.39%
d) 11.23%b

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