Room and Board is considering two capital structures that have a break-even EBIT of $28,200. The all-equity capital structure would have 17,000 shares outstanding. The levered capital structure would have 12,550 shares of stock and $92,000 of debt. What is the interest rate on the debt? Ignore taxes.

A. 9.17%

B. 7.62%

C. 7.20%

D. 8.02%

E. 8.41%