A firm currently has no debt and its equity beta is currently 2.0. The risk-free rate is 5% and the market risk premium is 7%. The corporate tax rate is 40%. The firm is going to switch its debt-to-equity ratio to ratio to (i.e., they will set D/E = ). The debt they issue will pay 8% interest. If they make this change, what will the firm's new weighted average cost of capital (WACC) be after the change?

	Between 17.26 and 17.50%
	Between 17 and 17.25%
	Between 16.75% and 16.99%
	Between 16.50% and 16.74%