Pavos Inc. has EBIT of $40m every year forever. The firm is funded with $150m of debt and the rest with equity. The firm's cost of debt is 6%. If Pavos were an all-equity firm, its cost of capital would be 10%. Its corporate tax rate is 30%. Financial distress cost is assumed to be zero. What is the weighted average cost of capital (WACC) for the company? O A. 8.6% OB. 8.9% O C. 9.2% O D. 10.0% O E. 11.0% O F. 12.4%