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Only one answer is correct, and that is one of the options.

Zatanna Zatara is expanding her Mastery of Magic courses to broaden her reach to a younger audience. Zatanna has financed her expansion with 65% equity and 35% debt. Zatanna can borrow at 5.80%. The current Treasury bond rate is 2.50%, the average return on the SP 500 Index is 8.05%, and Zatanna's firm has a beta of 1.34.

Assume a marginal tax rate of 28%.

What is the WACC for Zatanna's firm?

A. 8.489%

B. 6.296%

C. 6.192%

D. 7.027%

E. 7.921%