SQ Inc. has a capital structure consisting of 30% debt and 70% equity. Its marginal corporate tax rate is 35%. The current risk-free rate is 3%, and the market return is 8%. SQ Inc. has a beta of 1.50. Assuming that the CAPM is correct, what is the WACC for a project financed with 20% debt at a 6% cost of debt, and the rest equity, undertaken by SQ Inc.?

A. 8.52%

B. 9.18%

C. 9.60%