Eaglet Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Eaglet Corporations weighted average cost of capital?

Target common equity weight:	50 percent
Target debt weight:	50 percent
Cost of equity:	12 percent
Cost of debt:	4 percent
Tax rate:	36 percent

A. WACC = 7.28 percent

B. WACC = 8.00 percent

C. WACC = 5.12 percent

D. WACC = 7.30 percent