ABC Company is currently 100% equity and zero growth. The firm has an annual EBIT of $1,700,000, its current cost of equity is 10%, and the corporate tax rate is 25% (assume personal taxes are zero).

The firm's CFO has decided to recapitalize by issuing $4,000,000 in debt that carries an interest rate of 6% and repurchasing shares. Assuming that the assumptions of the Modigliani and Miller models hold, what is the expected WACC after the recapitalization?

Group of answer choices

9.27%

9.00%

8.71%

8.57%