It is $2017$ and Branson Partners is a boutique investment firm that is completing an analysis on Sturdy Inc., a small publicly traded construction equipment company that one of their clients is contemplating as an acquisition. Sturdy, Inc. does not have any publicly traded debt, nor do they have recent observable borrowings. Branson collects firm fundamentals and other information from Sturdy, Inc.$$s financial statement and from the market. Some of this information is summarized below:

Book Value of Equity $$235$M

Market Value of Equity $$267$M

Book Value of Total Debt $$101$M

Current Year Interest Expense $$9\mathrm{.}7$M

Cost of Equity Capital $8\mathrm{.}00\%$

Cost of Debt $9\mathrm{.}25\%$

Marginal Tax Rate $30\%$

Assuming you can only use the information above, what is the appropriate discount rate to use if Branson chooses to value the enterprise using a discounted future benefits model?

Group of answer choices

$8\mathrm{.}5\%$

$9\mathrm{.}25\%$

$7\mathrm{.}58\%$

$7\mathrm{.}37\%$

None of the above