. Richton Park Corporation strives to maintain a capital structure of 42% debt and 58% equity. Investment bankers have stated that if the company were to borrow money, it would have to pay an annual interest rate of 5.6% (kd). The annual return that owners would expect for providing money (ke) is 8.8%. The firm's marginal income tax rate is a combined federal-plus-state 23%. What is its annual weighted average cost of capital (kA or WACC)? A. 6.94% B. 7.46% C. 6.20% D. 6.92% E. 7.20%