ABC Company currently has a debt-to-equity ratio of 0.3. Its target debt-to-equity ratio is 0.4. The risk-free rate is 6%, and expected equity market return is 12%. ABC is considering a project that has a beta of 1.2. Given that the companys after-tax cost of debt is 7%, and the applicable tax rate is 40%, the WACC that should be used in evaluating this project is closest to:

A. 10.63%

B. 11.43%

C. 11.77%