Tapley Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) Tapley's bonds mature in 25 years, have a 8.00% annual coupon, a par value of $1,000, and a market price of $989.42. (2) The company's tax rate is 40%. (3) The risk-free rate is 5.00%, the market risk premium is 5.50%, and the stock's beta is 0.7. (4) The target capital structure consists of 55.00% debt and 45.00% equity. Tapley uses the CAPM to estimate the cost of equity, and it does not expect to have to issue any new common stock. What is its WACC?

		A. 6.66%
		B. 7.41%
		C. 7.16%
		D. 6.91%
		E. 6.41%