State Auto Financial Corp. has a target capital structure of 40% debt and 60% common equity, with no preferred stock. Its before-tax cost of debt is 13% and its marginal tax rate is 35%. The current stock price is Po-$21.20. The last dividend was Do-$1.50, and it is expected to grow at a 4% constant rate. What is its WACC? 8.45% None 10.20% 11.94% 12.79%