QUESTION 15 Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The fir m's noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,000.00. (2) The c ompany's tax rate is 25%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock's beta is 1.20. (4) The target capit al structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of equity, and it does no t expect to issue any new common stock. What is its WACC? Do not round your intermediate calculations. a. 8.90% O b. 10.32% c. 11.03% Od. 6.76% Oe. 9.32%