KT Enterprises is considering undertaking a new project. Based upon analysis of firms with similar projects, KT has determined that an unlevered cost of equity of 12% is suitable for their project. KT's marginal tax rate is 35%, its borrowing rate is 7%, and KT does not believe that its borrowing rate will change if the new project is accepted.

If KT expects to maintain a debt to equity ratio for this project of .6 then KT's project based WACC, rwacc, for this project is closest to:

a. 11.1%

b. 10.8%

c. 9.6%

d. 10.5%