Your firm has only common equity and long-term bonds. The bonds currently sell for $1,067.92 with a coupon of 4.8 and mature in exactly five years. Your stock has a beta of 1.30, is currently priced at $36, paid its most recent dividend of $2.50. That dividend is expected to grow at a rate of 3.0% each year. The bonds are right at 28% of the company's long-term capital. The relevant tax rate is about 31.0%. Given all of that, what is a good estimate of your company's WACC?

a. about 7.63%

b. about 7.76%

c. about 7.95%