The CFO of Quanto Corp. wishes to estimate the company's WACC. You are a business analyst for the company and it is your job to do the calculations. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years (assume N=20), have an 8.00% annual coupon, a par value of $1,000, and a current market price of $1,050.00 (assume the bonds pay interest annually, once per year at the end of the year). (2) The company's tax rate is 40%. (3) The risk-free rate is 4.50%, the market risk premium (RP) is 5.50%, and the stock's beta is 1.20. (4) The target capital structure consists of 35% debt and 65% common equity. The company uses no preferred stock financing. The firm uses the CAPM (Security Market Line) to estimate the cost of equity, and it does not expect to issue any new common stock. What is the company's WACC given the above information? (Work the problem with %'s for the respective costs, select the answer closets to the answer you calculate) 7.93% 7.54% 8.8096 7.16% 8.35%