Following is information about Seasonal Products (SP) Corporation. The company has no preferred stock. Type of Proportion of the Type of Capital After-Tax Cost Capital Capital Structure Debt, TOT 6.5% Debt 40.0% Common equity Equity 60.0 Retained carnings, is 12.0 New issue, te 15.0 The firm expects to retain $300,000 in earnings this year to invest in capital budgeting projects. If the SP's capital budget is expected to equal $550,000, what required rate of return, or marginal cost of capital, should be used when evaluating capital budgeting projects? a. 11.17% . 9.80% c. 9.90% d. 11.60% De 9.25%