Gimly Co has 16 million shares of common stock outstanding, 800,000 shares of preferred stock outstanding and 210,000 ten percent semi-annual bonds outstanding, par value $1,000 each. The common stock currently sells for $38 per share and has a beta of 1.30, the preferred stock currently sells for $88 per share and pays a fixed dividend of $8 each year, and the bonds have 17 years to maturity and sell for 91 percent of par. The market risk premium is 10.5 percent, T-bills are yielding 3.5 percent, and the firm's tax rate is 17 percent. What discount rate should the firm apply to a new project's cash flows if the project has the same risk as the firm's typical project? A. 14.00 percent B. 14.77 percent C. 15.00 percent D. 15.77 percent