Assume Pacific Shipping Corp. can borrow up to $20 million debt at a before tax cost of 7% and thereafter at a before tax cost of 8%. The firm will first use its retained earnings of $60 million (with a cost of 13%) and then issue new stock (with a cost of 15%) to finance its future investment projects. The target capital structure of the firm is 60% equity and 40% debt. The corporate tax rate for the firm is 30%. What is the firms marginal WACC if the firm wants to raise $70 million?

Group of answer choices

11.24%.

8.45%.

7.00%

9.76%

10.04%.