TransPacific Inc. is an import-export company specializing in products from Asia and the West Coast. It can borrow in the debt market at 9%. Its cost of equity with 40% DN ratio is 13%. Its corporate tax rate is 20%. If the M&M world of taxes holds true, what is the WACC for TransPacific Inc. with a 40% DIV financing?  A. 9.44% B. 8.00% C. 10.68% D. 7.80%

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