ABC Inc., a U.S retail company, currently maintains a debt-equity ratio of 0.7 (when using book values) and 0.85 (when using market values). The corporate debt issued by ABC Inc. has a credit rating of AA with a corresponding default spread of 0.6% p.a. Its equity beta is currently 1.2, the risk-free rate and market risk premium are 5% p.a., and 7% p.a., respectively. If the statutory corporate tax rate is 30%, which of the following is closest to ABC's current after-tax weighted average cost of capital (WACC)? O 7.44% p.a. 9.82% p.a. None of the other answers. 09.50% p.a. 9.04% p.a