IL HITUSUUN VIII Varu Due S 1 18) LUNI UI Lord Assets Cash Other Assets 250 1200 Liabilities Debt Equity 650 800 Cost of Capital Debt Equity 7% 14% 21% lota Industries New Project Free Cash Flows Year 1 2 Free Cash Flows ($250) $75 $150 $100 Assume tha this new project is of average risk for lota and that the firm wants to hold constant its debt to equity ratio. lota's weighted average cost of capital is closest to: O A. 9.75% OB. 10.85% OC. 8.40% OD. 11.18%