Trojan Services' CFO is interested in estimating the company's WACC and has collected the following information: * The company has bonds outstanding that mature in 26 years with an annual coupon of 7.5%. The bonds have a face value of $1,000 and sell in the market today for $920. * The risk free rate is 6%. * The market risk premium is 5%. * The stock's beta is 1.2. * The company's tax rate is 40%. * The company's target capital structure consists of 70% and 30% debt. * The company uses the CAPM to estimate the cost of equity and does not include flotation costs as part of its cost of capital. What is Trojan's WACC?

A.10.87%

B.9.39%

C.9.89%

D.9.75%