Rexco before-tax cost of debt is 6%, their cost of equity is 10%, their books show $10 million of debt and $30 of equity. IF their debt trades at par, their 1 million outstanding shares at $70/share, and their tax rate is 20%, what is their weighted average cost of captial?

7.20%

7.50%

8.25%

9.35%

9.50%