QUESTION 15 Assume that you are an intern with the Lowell Company, and you have collected the following data: The yield on the company's outstanding bonds is 7.75%; its tax rate is 21% the next expected dividend is $0.65 a share the dividend is expected to grow at a constant rate of 6.00% a year, the price of the stock is $15.00 per share the flotation cost for selling new shares is F 10%; and the target capital structure is 45% debt and 55% common equity What is the firm's WACC, assuming it must issue new stock to finance its capital budget? 8.7% 9.11% 9.52% 9.83%