QUESTION 12 Bradley Isensee Wholesale wants to expand its operations using only debt and common equity. It can borrow unlimited amounts at a before-tax interest rate of 8 percent as long as it utilizes its target capital structure, which calls for 30 percent debt and 70 percent common equity. Its last dividend was $1.37, its expected constant growth rate for dividends and earnings is 13 percent, and its stock sells for $28. The firm's marginal tax rate is 40 percent. If the company issues new common stock, a 8 percent flotation cost will be incurred. Net income in the coming year is projected to be $790,000, and the dividend payout ratio is 8 percent. Calculate WACC2. 14.57 percent OA. 14.75 percent OB. 14.26 percent OC. 14.11 percent OD. 15.53 percent OE