Rapid Co. has a beta of 0.8. The expected return market risk premium is 10% and the risk-free rate is 3%. The yield-to-maturity (YTM) on their outstanding bonds is 8% and the marginal tax rate is 21%. Based on the balance sheet values, Rapid Co. currently has 40% debt and 60% equity. However, its target capital structure is 30% debt and 70% equity. How much is the WACC of this company?

Group of answer choices

8.82%

8.19%

10.10%

9.60%