(Finding the WACC) The information given here has been gathered about O'ryan Swim-Where, Ltd. Based on this information, estimate O'ryan's WACC.

Current market value of common shares (10 million outstanding): $23.63/share

Next year's expected cash dividend: $1.92/share

Expected constant annual dividend growth rate: 8%

Current market value of bonds (100,000 bonds outstanding, 8.5% coupon, maturing in 21 years): $835.00/bond

Corporate tax rate: 34%

Possible answers:

10.73%

12.51%

13.77%

14.22%

15.19%

16.13%

16.44%

17.59%

18.43%