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Question 8 1 0 p t s Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data:

Question 8
10pts
Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the company's outstanding bonds is 7.75%, its tax rate is 25%, 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 $14.00 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?
9.96%
8.75%
8.23%
7.98%
10.12%
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