I-Polo International Inc

I-polo International Inc. has a tax rate of 22% and a capital structure that includes five million common shares outstanding at a rate of $26.50 per share. Its expected dividend for next year is $2.25, the result of a constant rate of dividend growth of 2% per year. It has four million bonds with a face value of $1,000, a coupon rate of 9% and selling at a price of $840. What is the weighted average cost of capital (WACC) ?

A) 7.9%%
B) 8.3%
C) 8.5%
D) 9.3%
E) 10.4%