Part $2$ of $2-$ Info for next two questions

Lexton Ltd has a beta of $1\mathrm{.}1.$ The market risk premium in South Africa is $5\%$ and the return on government bonds is currently at $7\mathrm{.}5\%.$ Lexton's issued debentures have a nominal value of R$100$ each and is

currently trading at R$94\mathrm{.}50$ each. The coupon rate is $8\%.$ The debentures are redeemable at the nominal value in five years' time and the tax rate is $28\%.$ The target capital structure of Lexton is $40\%$ debt and $60\%$

equity.

The weighted average cost of capital calculation for Lexton is as follows:

what is the cost of debt to be include in WACC calculation $($B$)$ of Lexton

A$\mathrm{.}6\mathrm{.}79\%$

B$\mathrm{.}7\mathrm{.}76\%$

C$8\%$

D$5\mathrm{.}76\%$

E$.$None